Jay Powell SMACKS Down Press In Classy Interview
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Politics and the Federal Reserve. I spent a lot of time yesterday. usually don’t, I honestly, I usually don’t sit and listen to the, you know, Jay Powell come out, whoever that’s in charge of the Fed and give their entire question answer bit. Sometimes I bear a little bit of mind, but I was curious this time around because, you know, tariffs coming down the pike, the media, I knew was going to be all over this. And I watched, I watched the media, every outlet out there.
without exception. Every outlet out there was quite funny. were just, they were trying to bait Jay Powell, trying to bait Jay Powell into going after Donald Trump and his policies. even today, you take a look around and you get, yes, Nick Timuros from the Wall Street Journal. He’s their Fed whisperer. Fed projections see an economy dramatically reset by Trump’s election. Not long ago, Federal Reserve officials presume that 2025 would simply be about getting to the soft landing. Again, they talking about tariffs, I watched the entire thing, Tim, and the Federal Reserve came out and said that in their projections, they they priced in what they felt.
Trump’s tariffs would do to the economy and you take a look at the numbers and Jay Powell was emphatic yesterday saying that economy is growing, unemployment is low and he doesn’t see any problems moving forward but you’re watching again the media bend over backwards to go after
Trump’s policies, every single reporter out there without fail. was quite frankly, it was a little bit annoying to tell you the truth. Other Wall Street Journal, editorial board, none too happy about tariffs. And quite frankly, I don’t like tariffs either. I’m not a fan of them either. Tariffs give the Fed an inflation foil. Basically saying that the Fed can blame any sort of inflationary pressures on Donald Trump’s tariffs. I mean, so far,
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people let last time I checked inflation is coming down.
What was it, two, three weeks ago, due to the avian flu, egg prices went through the roof. You watched the liberals and the mainstream media have a collective egg freakout. Now all of a sudden, egg prices are down almost 70%. Take a look at gasoline prices and you’ve watched those, that come down as well. I wanna…
go back, the Fed, without a doubt is tied into politics. You just you can take a look at the backgrounds of these people, how they normally vote, what party they’re from, I would think four or 500 economists that quite frankly, they they can’t figure much of anything out. You know, it’s just inflation is transitory. They miss everything. They miss everything. Politics, let’s go to the lead up to 2024 election, the Federal Reserve lowered
Rates. They lowered rates by 100 basis points. 100 basis points. Okay. Why? I don’t know.
I don’t know, again, even the mainstream media was kind of scratching their head saying by every metric out there, by all of the various different rules or benchmarks you normally use, the Fed has no business lowering rates. This is going back to the fall of this past year. And they’re not wrong.
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They’re not wrong. So you had the Fed lower interest rates by hundred basis points. had the, was running the Biden administration basically just dump cash into the country in a myriad of different ways. And you’re not telling me that wasn’t political, that wasn’t there to help boost the economy, to help get Kamala Harris elected. No, I’m sorry. You can’t tell me otherwise. Not to mention the fact. You lowered rates by a hundred.
basis points and the 10-year treasury. 10-year treasury went 100 basis points in the opposite direction, which has never, ever, ever happened. Again, what is the lesson here? Well, you the Fed has power, there’s no doubt about it, but its power is limited. The reason why we’ve seen rates come down, take a look at the 10-year and how it’s come down, quite frankly, it has to do with the fact that
There’s the idea, even though again, I’m skeptical. I’m hopeful, but skeptical at the same time that we’re gonna start cutting spending. We’re gonna start being more fiscally prudent. That without a doubt, Elon Musk is right. He’s right. Every trillion dollars you save, I’m sorry, that’s 100 basis points.
to the downside as far as what we are spending on our borrowing costs. And again, that filters down to what we spend on cars, homes, whatever it may be. There’s bonus for being fiscally prudent. And that means your risk comes down. That means your interest rates come down. And right now, that’s the direction we’re heading in without the Fed doing a darn thing.
I do I get credit where credit’s due. I’ve been very critical of Jay Powell. He didn’t take the bait. He didn’t take the bait yesterday. And he was actually quite forceful in pushing back in regards to all of the reporters that were trying to bait him into trying to cause a toss up with Donald Trump. Because that’s they want. They want conflict.
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They want, and that’s what they had. That was their agenda going in there. Let’s try to create some sort of headline. Sad but true. WhiteStalkandWallStreet.com.
