🚨 Trump and the Federal Reserve are at it again!
🗣️ Trump: Powell is an idiot! Lower interest rates! The interest on US debt is close to crushing the federal government!
💸 Current state of US debt: $34 trillion in debt, annual interest over $800 billion, a 1% rate cut could save $300 billion!
🔫 Powell strikes back: Lower interest rates? Inflation will go through the roof! The policy framework relies on data, not on changing the chairman!
🔥 Inflation data: May CPI year-on-year at 3.3%, core PCE still above the 2% target, lowering rates = pouring oil on the fire.
💡 Core conflict:
1️⃣ Trump wants to "save money and pay off debts" → needs low interest rates
2️⃣ The Federal Reserve wants to "control inflation" → needs high interest rates
🌍 America's dilemma:
▸ Lower rates → dollar depreciation + inflation rebound
▸ Do not lower → risk of US debt crisis + government shutdown crisis
📉 Market reaction:
▸ Dollar index DXY surpasses 105
▸ Bitcoin falls below $60,000 (interest rate expectations suppress risk assets)
▸ US bond yield curve inversion intensifies (recession signals flashing red)
