Fire Powell???
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Fire Jay Powell. Listen, Jay Powell, in my opinion, has made quite a few mistakes and we’ve been critical of him during his tenure. However, the president of the United States controlling the head of the Fed, beating him over the head, calling him names repeatedly and telling him that he needs to lower rates. He’s behind this, sending his
millions of influencers out there to talk about the political nature, whether it’s political or not, it really doesn’t matter. If Jay Powell lowered rates right now, what would happen?
What would happen? We had the CPI numbers come out yesterday hot. PPI came out today and everybody was, oh, look at that. Producer price index. It’s lower than they expected. It was going to be, that’s great. Well, most of the producer price index doesn’t have anything to do with imports at all, just so you know. Granted, granted you’ve got some raw materials that are in that, but.
A lot of those things were ordered well ahead of time before these tariffs even took effect. When we’re talking about the price of items and people say that there’s no inflation out there, I say, sure, show me your bills. Show me your bills. I want you to show me your bills and I want you to show me how the price of the stuff you buy is not going up. Then come back and talk to me. Okay, I take the government numbers and put it aside.
I don’t need a CPI report. I don’t need a PPI report to know exactly what’s happening. Neither do you. You’re smarter than that. People are saying if the Fed lowers rates, Fed lowers rates, well, then that’ll help because mortgage rates will come down and that will help out the housing market. Well, mortgage rates might come down for a bit, but the reality is it’s the bond market that’s really going to dictate what’s going on.
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And if the bond market feels that the Federal Reserve no longer is independent from the President of the United States, that’s not going to bode well. That’s also not going to bode well for the value of the US dollar. We’ve already seen the US dollar take a massive hit. Now, again, this is an issue. This is an issue when we have to import certain things.
We have to buy them with, let’s say if we’re buying something from Europe, we buy them with euros, the dollars have got to be turned into euros and then bought. But then the euros have become more expensive, meaning what? Those items have become more expensive. Granted, granted the inverse is true, 40%, 40 % of the sales for S &P 500 companies are overseas.
So a weaker dollar actually is actually good for our exports as far as the price is concerned. But again, we’re talking about our prices right now here as consumers. It is not gonna bode well by any stretch of the imagination. I do not think that this is the way to go. He’s done. He’s done what, March of next year. Not to mention the fact the Federal Reserve Chairman
is not a king. They vote on rates. And the members of the Open Market Committee have already made it perfectly clear that they’re not going to change their vote based upon what Donald Trump wants or whoever he decides to put in charge. So again, a little bit more of captain chaos here in the
summer of 2025. Just let it go. Yeah, Mr. President, just let it go. You do not have to, you’re not gonna help matters. I know you think it’s gonna juice the economy. And I’ve described it to people before, it will over a real short period of time. Like I said, I equated it, you’re drinking yourself a quadruple espresso, but it wears off.
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It’s not any sort of solid foundation and ultimately the bond market will decide. Watchdog on wallstreet.com.
