Trump thinks he knows better than Powell and wants rates to be cut to create economic growth that makes him look good. Of course, the problem is that Trump is an idiot and has no idea how any of that really works. That imbecile basically running the Fed through a puppet is a nightmare.
Correct me if I am wrong but is this not Economics 101? Our teacher drilled into our head that usually in most economies are going good there is always one thing out there that if failing. Or failing slowly.
@zeppo@lemmy.world is spot on, and you are also right! Check what Erdogan did in Türkiye with inflation, it's where America is heading.
The Fed isn’t a government agency, so I don’t think Trump can run it through the government appointed chairman. He isn’t in charge of the fed.
The fed "isn't a government agency" in the same way that the post office and CIA aren't.
It was created by an act of Congress and managed through appointments from federally elected offices.
The exact same process that names post offices could unilaterally undo the fed in whole or in part and no one has any direct recourse or appeal. Even a desperate appeal to SCOTUS would fail if the law was written clearly enough, since the Constitution specifically grants congress itself the sole power to print currency and regulate commerce.
(Yes, it's creation was a good thing. Yes, I know how it's funded. No, neither one changes it being a government agency, no matter what your sovereign citizen website says.)
He is intentionally bankrupting this country. His family has been investing in crypto and Chinese and Russian currency and are betting on these values skyrocketing when they upend the dollar. Never attribute to dementia what is better explained by malice.
Trumps whole thing is
Give or take. It's how he bankrupted a casino. I genuinely cannot tell if he knows he does this or not.
Powell tried to do his job rather than be a yes-man. There were some incidents where the two made conflicting statements at press conferences, and Powell didn't recant his statements.
Trump wants lower interest rates. Lower interest rates boost the economy in the short term while increasing the risk of a crash. But the crash is the next guy's problem. And it just makes Trump look better in comparison. The average American just looks at their economic situation in the here and now and attributes it to the current president.
There are many good answers in the thread…
So I’ll offer my shitty one.
Trump is a petulant toddler-man who HAS to be right. Low interest rates are good for him personally dealing with real estate; and he has no clue when dealing with macroeconomic issues.
Because he has dementia and his cabinet has told him to do this.
Low interest rates are good for people who have money already. If I had money, the bank will give me a lot of money to buy something, say some apartment buildings or a piece of land for development. Since the cost of borrowing is low, the cost of accumulating the ownership of assets is low.
But the bank won’t give me millions to buy real estate at 1% interest because I don’t have millions already to put down and protect the bank if the investment takes a while to pan out. I would have to be wealthy before the rules say I can accumulate more wealth.
The cheaper the interest rates, the more ownership the wealthy can acquire.
The impending destruction of the petrodollar is at hand
It's specifically to get lower interest rates for an economy boost in a mid-term election year. He needs a domestic win, even if it's short-sighted and will almost certainly lead to a bad economic shift next year. Powell has been rightfully hesitant on allowing the lower rates just to appease the child in the White House.
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