The Understanding King is again chasing after the Federal Reserve, shouting for interest rate cuts: "If you don't cut soon, the American economy will collapse!" This statement has scared the stock market, making it swing like a roller coaster, and even the US dollar is panicking. The White House and the Federal Reserve seem to be at a standoff.
On one side, the Understanding King wants to quickly cut interest rates to reduce the impact of tariff policies on the US economy; on the other side, the Federal Reserve is shaking its head at the inflation data: "Don't mess around, rising prices will be even more troublesome!" They have been arguing fiercely before the interest rate meeting on May 6, one wanting to hit the brakes and the other wanting to step on the gas, making the monetary policy clash loudly.
But this situation is really not sustainable. If the Federal Reserve is forced to cut rates, US Treasury bonds are likely to cry: "Can the whole world still trust me?" Capital will also get nervous and secretly burrow into gold.
Moreover, economic matters are not something to be swayed by slogans. If you forcibly inject loose monetary policy, you'll eventually get slapped by inflation, and no one will be able to escape. To put it simply, the White House wants to take shortcuts and be lazy, while the Federal Reserve must stick to its principles and not give in. If monetary policy becomes playdough in the hands of politics, in the end, it will be the American people who suffer the consequences.
