I am not sure about the "luckily for the US" part.
Trump wants to fire Powell and replace him with whom?
I am not a fan of Jay Powell, but I am pretty sure that whoever comes after him will be a net worse Fed Governor.
Markets have started reacting to these speculations, with the Dollar Index (DXY) tanking: another tailwind for bitcoin.
Markets like stability, markets don't like chaos. Markets reacting to this in the short term does not mean that replacing Powell is bad, it just means that extreme changes to status quo are not welcome. Powell is an idiot and Trump is right about him. They should just get rid of him, he's doing this for political reasons. As you see, the inflation is not much better in the EU but they have massively cut the rates in comparison.Trump wants to fire Powell and replace him with whom?
I am not a fan of Jay Powell, but I am pretty sure that whoever comes after him will be a net worse Fed Governor.
Markets have started reacting to these speculations, with the Dollar Index (DXY) tanking: another tailwind for bitcoin.
Inflation is part of the Fed's mandate.
Cutting rates ahead of a massive inflation shock could be a big error.
Tariff won't be an inflationary one-off, but rather another spiral.
It is not gonna happen, read the art of the deal to understand what is going on. Cutting rates ahead of a massive inflation shock could be a big error.
Tariff won't be an inflationary one-off, but rather another spiral.
Easier said than done. Everyone can do an amazing job running a central bank, the most important central bank on earth to boot, from the comfort of your screen typing some comments, but let's be realistic, if you had to actually do it, it would be different.
All im saying is, tariffs are inflationary, or there is at least a rationale behind the prediction of inflation due tariffs, and so that is what Powell has done, frontrun possible inflation by keeping the rates as they are. And what does Trump do now, they say they are lowering China's tariffs. So Trump has been flip flopping for months with this, it's only fair that you may be cautious and just keep rates as they are until Trump lays out a more predictable plan, then they can lower rates. If they lower rates and we see another peak on inflation, that may be a bigger problem than having rates higher for longer for a while.
The chairman is literally not doing almost anything except having pointlessly long meetings over and over again. Looking up to authority is not good for anyone. Just because someone says that job is hard, that does not make it so. All im saying is, tariffs are inflationary, or there is at least a rationale behind the prediction of inflation due tariffs, and so that is what Powell has done, frontrun possible inflation by keeping the rates as they are. And what does Trump do now, they say they are lowering China's tariffs. So Trump has been flip flopping for months with this, it's only fair that you may be cautious and just keep rates as they are until Trump lays out a more predictable plan, then they can lower rates. If they lower rates and we see another peak on inflation, that may be a bigger problem than having rates higher for longer for a while.
