He is literally destroying the world markets. Demanding rate cuts in a market where inflation is about to skyrocket is going to create even more market uncertainty sending equities around the world to collapse https://www.cnbc.com/2025/04/21/trump-powell-attacks-interest-rates-fed.html
ECB has cut rates 7 times in less than a year. There will be no inflation in a recession, most people are broke and up to their eyeballs in debt.
Inflation is a monetary phenomena. It is printing money +velocity of money. The rest is nonsense dream up by economists and economic professors to justify their salaries.
its not really about Recession or spending. Its about the worthless USD and the very suspect US Treasuries behind the USD. The entire globe is now using massive different strategies to avoid the USD completely. And many have begun to start dumping Treasuries. The only reason Most countries were using the USD is to sell Goods to USA. Today, they are no longer selling Goods to The USA cuz Tariffs. The only reason Most countries Hold Treasuries is to Counter Trade Deficits. Trade Deficits will be falling extremely cuz Tariffs.
Trump apparently thinks JPow is trying to crash the markets, but I think Trump is in the wrong here. I've never been much of a fan of JPow... he printed too much, never raised rates enough, began cutting too soon, and biggest of all, never drained the excess Covid stimmy... all of which has lead to our inflation. However, I think he's correct is not giving Trump the rate cuts he wants right now.. JMV.
Abolish the Fed and let the money supply grow by 3 per cent annually per Milton Friedman Probably most people on ET don't even know who Milton Friedman is.
The negative "wealth effect" is a policy goal. Trump knows how dumb the general public is about markets. He can actually blame Powell, and then set up replacing him as the 'solution', MAGA and all that.