Powell’s moves at the Fed are more than just policy—they’re a balancing act between economics and politics. Here’s the breakdown:



📉 Inflation vs. Employment:




  • Inflation is an economic burden most people endure quietly


  • Unemployment hits public nerves directly, becoming a political red line 🔮

    Powell clearly avoids taking risks that could trigger recession blame during his term.




⚖ Contradictions in Action:




  • Declared the U.S. achieved a “soft landing” ✅


  • Inflation dropped to 3%, yet interest rates remain high, citing fear of rebound 😬

    Markets see the shadow of politics in these decisions.




đŸ›ïž Partisan Influence:




  • Many see the Fed as influenced by the Democratic Party, shaping policies as a tool against opposition


  • Past moves were controversial:



    • 2021: Inflation at 5%, yet quantitative easing continued


    • Now: Inflation at 3%, yet rate cuts delayed due to “rebound fears”





⚡ Market Takeaway:


This capricious approach frustrates confidence and edges the economy closer to potential recession risk. If a downturn hits, responsibility cannot be ignored.



#FederalReserve #PowellWatch #USAEconomy #MarketInsights #BÄ°NANCE