Trump vs. Powell: Who Really Controls Interest Rates?

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So Donald Trump wants full control over the Fed. I keep thinking that song from the 1990s by Snap. I got the power. Yeah. Trump said that he will soon have a majority of his own nominees on the Federal Reserve Board of Governors who will back his desire to slash interest rates. boy. Again, I’m going to remind everybody that

Donald Trump has been a real estate developer and he has borrowed ungodly sums of money. Again, that was his business. Some things worked, some didn’t. I’m not going to get into that, but he most certainly, guy who borrows a lot of money, most certainly wants lower interest rates. He made this comment at cabinet meeting yesterday and man, I’m not going to go through the various different things that were said there.

Again, never before has a president gone and made the step to fire a central bank governor.

He’ll said we’ll have a majority very shortly. So that’ll be great. Once we have a majority, housing is going to swing and it’s going to be great. People are paying too high an interest rate. That’s the only problem with us. We have to get rates down a little bit. Then he said about this replacement. Well, we have some very good people for that position. And I think we have some very good people we’re down to. I think I may be in my own mind have somebody

that I liked. Again, we all know how Trump has gone after Jay Powell, various different statements that have been made. I, for one, have always been very, very critical of the Fed and how they operate and the inner workings of the Fed. However, I also do appreciate the fact that they are supposed to remain independent. One of the reasons why

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United States, we are the world leader, we’re the reserve currency for the planet, is that we have a semblance of free market here. This is why people talk about bricks. China manipulates things all the time, that their currency can’t be trusted. the Fed, whether they’re right or wrong on their policy decisions,

if it’s going to be left to the whims of who is in the executive branch of government here in the United States, that doesn’t bode well for the United States. And I’ve said this before, I’m gonna say it again. The Fed slashes interest rates. It doesn’t mean mortgage rates are coming down. It doesn’t mean the housing market is going to boom.

Again, I’m sorry and I don’t want to offend anybody, but a lot of you, again, I wish you would stop listening to politicians and actually do a little bit of homework.

When rates come down, when rates come down, the prices of homes go up. Right now, right now, we’re looking at a situation where homes in the United States have never been this unaffordable. Never has the median price home, median price home been priced at a level

where a median family income can’t afford it. It’s never been this far out of whack. If you honestly think the Fed cutting rates by 25 basis points, 50 basis I remember Trump made a statement a few weeks ago, I gotta cut it by 300 basis points. It doesn’t matter. Do you understand? The Fed doesn’t have that type of power. Mortgage rates didn’t go down last fall.

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And the Fed lowered rates by a hundred basis points. It’s just that simple. It doesn’t work that way. But again, guy can say what he wants to say and supporters will believe it. Anything he says, they are going to believe. He could come out and he could say two plus two equals 20 and you will find MAGA influencers out there trying to justify it.

Not to mention

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Let’s play pretend. Let’s say, let’s let’s say, AOC. AOC is the next president of the United States. You want the executive branch of government to have this type of power? You think that that’s a that’s a good idea?

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