To me, this is the point.
A 25 cut is a policy error, in my humble opinion, but this cut or even a 50 bps one, aren’t going to change anything in the big scheme of events.
I am trying to say is a bit different. Even if it is an error, it is not going to destroy the economy. Do the cut, observe what happens and let's see if it is a mistake or not.
Yet, if those cut are done to accommodate Trump pressure, this is far worse.
I don’t think I am a naive person, but this level of pressure from fiscal authorities on the FED is unprecedented, even by modern standards.
A lot of the public fighting is just theater. Don't always assume these things are real, especially from a country that is so obsessed about making everything into entertainment. It is difficult to be sure about these things, but the default stance should be that it is fake. A lot of these things are used to distract the population through the media from other things that are going on.
Look at it wider. Tariffs on and off, Trump and Musk fighting on and off, in between and more recently Powell and Trump fighting on and off, Epstein again and such it goes. There is always a distraction, never a time without one..
And if you look at the recent yes saying to rate cut, there are only two options. Either doing a cut was already alright but Powell refused for political reasons or theater, or a cut is mistake now but he's accepting to do it for a political reason. Because since the last FED meeting and the next rate cut meeting, nothing really changed. It just shows that there is no independence, the whole system is deeply corrupt. You can even dismiss most of the economic data as at least partially false, sometimes even significantly falsified.