Trump and the pressing rate cut

[EarnOnVictor]

Let me first put the question to you: Is Trump right to pressure Jerome Powell to cut the Federal Funds Rate?

Trump! Trump!! Trump!!! This soul looks unspeakable, to be honest. Trump likes to control everything and likes everyone to bend the knee. If you prove too stubborn, you will either be sanctioned, tariffed or blackmailed. It's no news that Jerome Powell is now in the black book of Trump, simply because he refused to cut the interest rate. More pressure has been mounted in recent weeks, which includes verbal harassment, threats of replacement and blackmail. The recent blackmail is the lawsuit threatened regarding the Fed's building renovation fund, something Trump wouldn't have thought of if Powell had done his bidding. Mehnnn, Trump will always be Trump.

Now, I took my time to check the US inflation figure to judge if this pressure is worth it, and honestly, it is not, at least arguably not, except that Trump always wants things done his way, regardless of whether or not it follows due process/economics. If at all, the uncertainty ignited by Trump's tariff war is a good reason to wait for the cut.

Again, from the U.S. Bureau of Labor Statistics, the US core inflation rate looks upward to me, which was rekindled in March 2025. Is this the right time to cut the rate?



Below is the PPI released just yesterday for the month of August. The value was 0.7% higher than the forecast and 0.9% higher than the previous value.



Upon all these, Trump could say this:


https://www.forexfactory.com/news/1356454-us-president-trump-inflation-is-down-to-a

This can only be Trump!

[Don Pedro Dinero]

Let me first put the question to you: Is Trump right to pressure Jerome Powell to cut the Federal Funds Rate?

No, but he obviously doesn't care what we think. Besides, it's all a joke. A federal reserve that is supposedly independent but clearly has political ties. Besides that it is the main cause of the general population becoming poorer, because in crises like 2008 or 2020 it started printing as if there was no tomorrow which enriched people who had financial assets while those who depend only on their work to live became poorer by the devaluation of the currency.

It will not hurt to remember the message of the genesis block:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

So the best we can do is to keep stacking sats so we can be less dependent on what a central bank does or what Trump thinks.

[fillippone]

There is no reason why the FED should cut rates.
They have a dual mandate: job and inflation.
We are on the right track on the job side, and the US is at nearly full employment.
On the inflation side, data is getting hotter and hotter, and the tariff situation will add some pressure to the scenario.
I don’t understand why JP could raise rates.
The only reason the FED could cut rates is the political pressure from the White House. Powell's problem is that he has to have the Board of Governors on his side, but sadly, they are concerned about re-election.

[coyhasmon]

Let me first put the question to you: Is Trump right to pressure Jerome Powell to cut the Federal Funds Rate?

Yes, Powell is acting in a very political way and as such he is manipualting the public in order to help democracks in the next election. That's not what he is supposed to do, he needs to leave.

Below is the PPI released just yesterday for the month of August. The value was 0.7% higher than the forecast and 0.9% higher than the previous value.

This does not include directly the effects of tariffs, only indirectly.

The only reason the FED could cut rates is the political pressure from the White House. Powell's problem is that he has to have the Board of Governors on his side, but sadly, they are concerned about re-election.

None of them are getting a second mandate. Ya'll crazy to believe this is actually about fighting inflation. Do you really think that a 50 points cut too early can destroy the economy?   That's some nice brainwashing right there.

[pooya87]

Is Trump right to pressure Jerome Powell to cut the Federal Funds Rate?

I don't think it really matters. This whole thing looks more like a political fight between parties with conflicting interests. The rates won't change much. But right now since Trump has managed to force the Arab dictator to increase production and lower the oil price, his speculation is inflation coming down so he is pushing for lower rates to battle the recession.

Trump likes to control everything and likes everyone to bend the knee. If you prove too stubborn, you will either be sanctioned, tariffed or blackmailed.

That's because he is a psychopath, which I believe is the reason why he has raped little girls in the past. It is not just pedophilia with him, it is his need to feel dominant. Something we can see in all his behaviors (the main reason why I use the term "emperor wannabe" for him).

threatened regarding the Fed's building renovation fund,

He has already cut the funding for far more important stuff like universities budgets just because students were protesting against him...

[coyhasmon]

Is Trump right to pressure Jerome Powell to cut the Federal Funds Rate?

I don't think it really matters. This whole thing looks more like a political fight between parties with conflicting interests. The rates won't change much. But right now since Trump has managed to force the Arab dictator to increase production and lower the oil price, his speculation is inflation coming down so he is pushing for lower rates to battle the recession.

The rates are coming down one way or another baby, that is what you don't understand here. Either Powell does it willingly or he is out, the latest by May. There is no chance for him otherwise. It is not a matter of if but when.

He has already cut the funding for far more important stuff like universities budgets just because students were protesting against him...

They were protesting regarding Israel and Palestine, not trump. Do you have CNN turned on 24 hours in your home? Don't make shit up.

[fillippone]

None of them are getting a second mandate. Ya'll crazy to believe this is actually about fighting inflation. Do you really think that a 50 points cut too early can destroy the economy?   That's some nice brainwashing right there.

Of course it is not about the inflation.
If it were for the inflation, FED should hike rates.
It’s about the liquidity, and the market going up only. This is the reason why the White House is pressuring the FED: it’s all political.
And a bad situation for the USD, either way.

[Die_empty]

Let me first put the question to you: Is Trump right to pressure Jerome Powell to cut the Federal Funds Rate?

One of the reasons.why rich individuals and big businesses invest in the US is because it is believed that it's economic decisions are based on sound and reliable data. Trump recently fired Erika McEntarfer, the head of Bureau of Labor Statistics claiming that the agency gives out rigged job statistics. All this move was to force the Feds to cut rates. The US will lose some grounds in the global economic space if it becomes obvious that these important agencies are now under the control of the presidency. It is highly wrong for the president to interfere in the operations of the Feds.

The only reason the FED could cut rates is the political pressure from the White House. Powell's problem is that he has to have the Board of Governors on his side, but sadly, they are concerned about re-election.

Two Fed’s board members, Christopher Waller and Michelle Bowman voted against keeping the interest rate steady in the last meeting. Which shows that they are on Trump's side. With the unexpected resignation of a member Adriana Kugler, Trump will appoint his loyalist thereby controlling almost half of Fed’s board membership. With one more member on his side, he would assume full control of an important board that is established to be independent.

[coyhasmon]

None of them are getting a second mandate. Ya'll crazy to believe this is actually about fighting inflation. Do you really think that a 50 points cut too early can destroy the economy?   That's some nice brainwashing right there.

Of course it is not about the inflation.
If it were for the inflation, FED should hike rates.
It’s about the liquidity, and the market going up only. This is the reason why the White House is pressuring the FED: it’s all political.
And a bad situation for the USD, either way.

They should not hike the rates, what are you on about? Other countries have slightly lower inflation with much lower rates. Why should the FED act differently and make America at a disadvantage globally?

The only reason the FED could cut rates is the political pressure from the White House. Powell's problem is that he has to have the Board of Governors on his side, but sadly, they are concerned about re-election.

Two Fed’s board members, Christopher Waller and Michelle Bowman voted against keeping the interest rate steady in the last meeting. Which shows that they are on Trump's side. With the unexpected resignation of a member Adriana Kugler, Trump will appoint his loyalist thereby controlling almost half of Fed’s board membership. With one more member on his side, he would assume full control of an important board that is established to be independent.

Like I said, people are delusional thinking that Trump will lose after winning everything short of the scam COVID elections with millions of dead voters. He has won every battle in one way or another. This does not mean that he won every court case but overall he's coming out a winner. Just look at what they are now trying to do with the Epstein lies, when Epstein was a big Democratic donor.  The FED rates are going down, it is just a matter of when exactly but overall it will be soon.

[fillippone]

Two Fed’s board members, Christopher Waller and Michelle Bowman voted against keeping the interest rate steady in the last meeting. Which shows that they are on Trump's side. With the unexpected resignation of a member Adriana Kugler, Trump will appoint his loyalist thereby controlling almost half of Fed’s board membership. With one more member on his side, he would assume full control of an important board that is established to be independent.

Having the board of the Central Bank, an institution deemed to be independent, targeting its own mandate, without intrusion from fiscal authorities, is of paramount importance when looking at the long-term sustainability of the US economy, through the sustainability of its debt.
If Trump sabotages this, it will be very difficult to revert and offset the negative effect.
Bad for the USD, good for bitcoin.

[coyhasmon]

Two Fed’s board members, Christopher Waller and Michelle Bowman voted against keeping the interest rate steady in the last meeting. Which shows that they are on Trump's side. With the unexpected resignation of a member Adriana Kugler, Trump will appoint his loyalist thereby controlling almost half of Fed’s board membership. With one more member on his side, he would assume full control of an important board that is established to be independent.

Having the board of the Central Bank, an institution deemed to be independent, targeting its own mandate, without intrusion from fiscal authorities, is of paramount importance when looking at the long-term sustainability of the US economy, through the sustainability of its debt.
If Trump sabotages this, it will be very difficult to revert and offset the negative effect.
Bad for the USD, good for bitcoin.

There is not a single thing or institution that is independent anymore, everything is political and biased. Wake up, you are living in a fantasy that does not exist anymore for decades.

[mindrust]

I mostly support Trump but I don’t understand why he is in a hurry. I mean the stock market is at its ATH, crypto is at ATH (bitcoin at least is, but the others are doing quite alright as well), then why is he so impatient with the rate cuts? I feel like some is about to snap soon. Statistically, it often happens right after the first rate cut. Yes, recession. Check the rate hike/cut chart if you don’t believe me. That also means the markets are about to crash if Powell follows Trump’s word. I think Trump knows this better than anyone. Then why would he want it? It is like he wants to crash the markets. I mean, if the economy is doing good and markets are breaking records, why even cut rates because everything looks good on paper. We’ll find out soon enough.

[pooya87]

The US will lose some grounds in the global economic space if it becomes obvious that these important agencies are now under the control of the presidency.

I think it is already lost. China has taken over the world. For example the Chinese manufacturing exports are already higher than US + Germany + Japan.


This would also explain why they are getting more desperate to cut the rates. Recession is killing production and they wish that by cutting rates they can help it improve...
This desperation is palpable in all of other Trump's actions as well. For example the recent meeting with Putin in Alaska. 2 psychos met and Trump basically sold Ukraine and Europe out just so he can focus elsewhere (specifically Asia, working from West toward East).

Ukrainians' reactions in their social media were funny when they saw US military (red circle) do this for Putin:

[coyhasmon]

The US will lose some grounds in the global economic space if it becomes obvious that these important agencies are now under the control of the presidency.

I think it is already lost. China has taken over the world. For example the Chinese manufacturing exports are already higher than US + Germany + Japan.


This would also explain why they are getting more desperate to cut the rates. Recession is killing production and they wish that by cutting rates they can help it improve...
This desperation is palpable in all of other Trump's actions as well.

And whose fault would that be? The President that is in office less than 12 months?   They should be really ashamed of themselves for not fixing the whole country already, how incompetent!   Too many people online are involved in these topics, people who have never even read some basic economics book not that that would guarantee that they know anything about it. Increase rates to stop a recession and lose the race even more? Yes that will work out wonderfully in the long term.

For example the recent meeting with Putin in Alaska. 2 psychos met and Trump basically sold Ukraine and Europe out just so he can focus elsewhere (specifically Asia, working from West toward East).

Ukraine is a corrupted shithole, that is not part of this topic. You can go in the politics board.

Ukrainians' reactions in their social media were funny when they saw US military (red circle) do this for Putin:

Doing what, their job? So bad.

Some people can't help themselves from being stupid! Those U.S. soldiers were adjusting the red carpet at the stairs of Putin's plane, getting it ready for when he disembarked his plane.

Exactly, bad propaganda post and not related to the economics discussion of the US.

[avp2306]

Ukrainians' reactions in their social media were funny when they saw US military (red circle) do this for Putin:

They just made fun on the situation knowing that vast majority of Ukrainians hate Putin and they just made fun on the situation for thinking that US soldier is kneeling on Putin while the fact they are just fixing the carpet as part if diplomatic respect for Russian leader.

Here's the story about this if other people want to read about that situation https://timesofindia.indiatimes.com/world/us/us-soldiers-kneeling-for-putin-viral-red-carpet-photo-triggers-backlash-california-gov-newsom-calls-it-disgusting/articleshow/123328337.cms

But for sure US soldier won't do that as they are loyal to their flag and obey their leader.

[asriloni]

I mostly support Trump but I don’t understand why he is in a hurry. I mean the stock market is at its ATH, crypto is at ATH (bitcoin at least is, but the others are doing quite alright as well), then why is he so impatient with the rate cuts? I feel like some is about to snap soon. Statistically, it often happens right after the first rate cut. Yes, recession. Check the rate hike/cut chart if you don’t believe me. That also means the markets are about to crash if Powell follows Trump’s word. I think Trump knows this better than anyone. Then why would he want it? It is like he wants to crash the markets. I mean, if the economy is doing good and markets are breaking records, why even cut rates because everything looks good on paper. We’ll find out soon enough.

That's obvious Trump wants to push GDP to looks better than this time. He wants to cut rate to stimulate US economy, and makes borrowing rate to be cheaper. Then it will attract more investment to come. However, he seems abandon the negative impact of cutting the rate, which will also skyrocketing the inflation same as after US got stipulated during the pandemic, then FED increased the interest rate. I can't really sure he's not aware of this. I guess he wants it for his own benefit.

[Ambatman]

Everything is becoming more political as the days go by (Powell reduced rate even while core inflation was above 3.2% before election)
I understand Powell stance on the wait and see decision
Because definitely Trumps tariff plan is going to push inflation level once implemented.

I think it is already lost. China has taken over the world. For example the Chinese manufacturing exports are already higher than US + Germany + Japan.

China has been leading since 2008 https://www.voronoiapp.com/trade/-The-Shift-in-Global-Manufacturing-Exports-US-Germany-and-Japan-Decline-as-China-Rises-4764

When it comes to Export, China are undeniably the King.

If Trump sabotages this, it will be very difficult to revert and offset the negative effect.
Bad for the USD, good for bitcoin.

Pure Tyranny. There need to be some check and balances and some office should remain independent of the government.

[coyhasmon]

If Trump sabotages this, it will be very difficult to revert and offset the negative effect.
Bad for the USD, good for bitcoin.

Pure Tyranny. There need to be some check and balances and some office should remain independent of the government.

There is no such thing, don't be a gullible little kid and believe what you are told. Everything is connected, manipulated, political and biased. Look at who the presidents were of ECB, very independent and unrelated choices. 

There is not a single thing or institution that is independent anymore, everything is political and biased. Wake up, you are living in a fantasy that does not exist anymore for decades.

[Ambatman]

There is no such thing, don't be a gullible little kid and believe what you are told. Everything is connected, manipulated, political and biased. Look at who the presidents were of ECB, very independent and unrelated choices. 

I know it's wishing thinking but that's what is supposed to be even if it seem unrealsitic
A single person shouldn't be allowed such power

What's playing just reminded me of decentralized power and centralized
Where the former is usually plagued by slow decision making due to existing of conflicting ideas (something US is experiencing with Jerome and Trump)

[Guccho]

That's obvious Trump wants to push GDP to looks better than this time. He wants to cut rate to stipulate US economy, and makes borrowing rate to be cheaper. Then it will attract more investment to come. However, he seems abandon the negative impact of cutting the rate, which will also skyrocketing the inflation same as after US got stipulated during the pandemic, then FED increased the interest rate. I can't really sure he's not aware of this. I guess he wants it for his own benefit.

I see what you’re saying. It does feel risky to push for rate cuts when markets are already at record highs because it can overheat the economy or fuel inflation. I think Trump’s angle might be to make the economy look stronger in the short term, especially if he’s thinking politically, but as you said, the side effects can be serious. Cheaper borrowing can stimulate investment, but it can also create bubbles or lead to a correction later. Honestly, it feels like a gamble where the short-term gain might be clear, but the long-term consequences are harder to predict.