'150 basis points? This guy must think the Fed is his own printing press!' When Bessenet's crazy talk hit Wall Street, the entire financial circle exploded. A former Treasury official slammed the table and cursed: 'This interest rate is high enough to strangle an elephant!' Even more extreme were his harsh words — the Fed must at least cut 150 to 175 basis points! This is not a suggestion; it is clearly raising an axe to chop down the Fed's treasury door!
The Federal Reserve is already in chaos. During the July interest rate meeting, two committee members flipped the table on the spot: 'I refuse to accept this interest rate!' Even more outrageous, Trump's 'insider' Stephen Moore, whom he placed in the Fed, is waiting to ignite his dovish bomb at the meeting. The golden-haired boss in the White House even threw a tantrum on Twitter: 'Tariffs are not to blame for inflation! The Fed nerds are too slow!' Political hands have already tightened around the neck of the central bank.
Traders are already blood-red with killing intent. As soon as the July inflation data emerged, gamblers pushed the odds for a September rate cut to 96%! That ruthless UBS guy named Heffler is even crazier than Bessenet, shouting: 'Cut 100 basis points directly in September, don’t dawdle!' These people are not betting money; they are betting on the coffin fund of the Federal Reserve!
But the reality is slapping these madmen in the face. Core inflation is slyly crawling back to a high of 3.1%, swinging like a ghost outside the Federal Reserve's window. A strategist from Blue Line Futures spat: 'Open your eyes and look! Inflation has revived for two consecutive months; a rate cut in September? Who are you trying to fool!' JPMorgan's Olszewski sneered as he added, 'Unless economic data falls off a cliff, they will definitely drag it out until the end of the year!'
The employment report has now become a life-and-death judge. The average number of new jobs over three months has dropped to 35,000, and the May data has been stripped bare — from 144,000 it plummeted to 19,000! This is not cooling down; it is clearly an ice age. Comerica Bank economist Bill Adams ripped through the window paper: 'Prices are as sticky as gum; tariffs mean nothing! The September employment data is the real knife!'
An even darker play lies ahead. The White House basement holds an 11-person blacklist, just waiting to kick Powell off the stage in May. Jefferies' Zavos, former council member Lindsey, and BlackRock's Reid — all are wolves and tigers of the financial circle. Bessenet sarcastically said, 'A big net has been cast,' then mumbled, 'no need for a shadow chairman.' Every word from this old fox is laced with poison!
Jim Reid of Deutsche Bank poured a bucket of cold water: 'Opening champagne now? Be careful not to chip your front teeth!' The real test will be the employment data in the coming weeks. While Bessenet shouted for 'reliable data' while opposing the suspension of employment reports, the absurd essence of Wall Street was fully exposed.
This century's gamble has reached a life-and-death stage. Is the 'compensatory rate cut' touted by Bessenet a lifesaver or a death warrant? When the inflation demon and the economic recession god both come to collect, how many bullets are left in the Federal Reserve's magazine?
The most crucial question has arrived: When the doors of the September interest rate meeting open, will Powell really dare to pull the trigger on a 50 basis point cut while facing inflation? In this game of Russian roulette, some want to go to the rooftop, some want to open champagne — what will you bet on, big or small?