Wednesday, August 27, 2025

Powell's Epiphany on Tariffs Not Causing Rising Inflation Means Discount Rate Cut in September

 

The Chairman of the Fed probably has handed the nails and hammer to Trump for his firing coffin
Finally having an epiphany that tariffs do not cause inflation and the towel to not lowering interest rates tossed in
The Fed’s refusal to cut interest rates has caused household budgets a great deal of stress
Spending too much on interest for cars, homes, credit cards and personal loans forced for other goods and services to spend less
Powell has been blinded not by Rockne’s Four Horsemen of the Apocalypse who on opposing football teams preyed
But Trump’s Four Horsemen of economic growth and price stability: tax cuts, deregulation, strategic energy dominance and fair trade
Already in the doghouse for his costly $2.8 billion renovation of the Fed’s Headquarters Taj Mahal
He has been under attack because of his views on inflation to be caused by tariffs that would cause rampant inflation and the dollar’s purchasing power to fall
Despite his distaste and dislike of Trump and his policies he has admitted his error
So we should see a rate cut in September of maybe 50 basis points to cripple the high interest terror
Look for the housing market and cars sales shoot up like rockets
And those consumers with credit card balances and personal loans have at month end more money in their pockets
The left is concerned about Trump’s threats to fire Cook and Powell as the independence of the Fed to destroy
Powell’s epiphany and the near expiration of his term may have insured his full term he will enjoy
And Cook after the DOJ referral for mortgage fraud has a reprieve until the referral into a mortgage fraud indictment turns
She will probably succumb to pressure to resign before the end of her term

© 8/27/2025 Michael P. Ridley aka The Alaskanpoet

   

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