Bad = Powell et al run the Fed
Worse = Presidents and Congresses Run the Fed
Even Worse = Presidents and Congresses Run the Fed and the first one to do so has a well-earned reputation for chaos.
Trump’s plan doesn’t make sense to me. The #1 reason he was reelected was to bring down inflation. Tariffs threaten to raise inflation, which could be partly held in check by high interest rates. But tariffs along with low interest rates seems like an inflationary disaster.
We have not had many examples of suddenly tariff enactment to use for data.
what we do have shows that they are at first DEFLATIONARY (and not in a good way).
It makes sense to seek a rate cut to offset that short-term deflationary impact.
Powell’s “wait and see” response is not bad either.
But threatening the independence of the Fed?
That’s serious serious stuff. Seems like a mistake.
Right. I’m not making predictions, and I agree Fed independence is important. We don’t really know how tariffs will affect inflation, so messing with interest rates now seems like a mistake.
Trump has been a disaster these last few weeks when it comes to the financial health of the US.
His plan that tariffs will save America are complete chaos. He is flip flopping around continuously and apparently we are supposed to believe this is all part of the art of the deal!!!
The Fed has always responded after the fact (except for extreme and immediate cases lie “to prevent a banking collapse.”)
It is what they call “being data dependent.”
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It was to stop the illegal invasion.
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I really don’t think that was the #1 reason, but it was a close second. People care more about their personal finances than anything else.
It sure seems that way to me.
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I’ll bet at least 13 million illegal immigrants eat eggs in the morning. 
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It was for me. These treasonous actions by Biden and Mayorkas had to be stopped…immediately.
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There’s also no way to separate over 13 million extra competitors for resources and housing from the inflation. The two issues are part of the same problem.
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Country headed in wrong direction both with 1 illegal immigrants and 2 economy.
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I am still a fan of (nonpunitive) tariffs
- 8 million people unemployed
- 7 million people part-time for economic reasons
- 9 million people working multiple jobs
= 24 million people (out of 135m private sector jobs)
AND
production jobs pay 15-20% more than non-college service sector jobs.
.
.
.
I just think it should be handled better.
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Yes.
I find the criticism of the tariff policy valid.
I think Trump will make it work.
Give it another month or two.
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Is 700 points really a tumble this early in the day?
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I don’t pretend to be an economic whiz. All I can say is the above about 13 million is intuitive. Other than that, my experience over the last 8 yeas has been:
Trump was the 45th President when I broke free of my debts entirely and had a great side hustle of tutoring college kids.
Biden was the 46th President when I had to go get a regular job, on top of having zero debt.
Trump has been the 47th President for 3 months now. I haven’t stopped working just yet. I want my Island Packet 42.
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Well reversing policy on tariffs now would be even worse.
But , yeah it’s time for a better approach.
