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And we have a Fed that's doing political things, this Janet Yellen of the Fed.
The Fed is doing political by keeping the interest rates at this level.
When the Fed uses interest rates to bring down inflation, what they're doing is tamping down that demand, right?
Let's put you out of work so that demand slows, so that price growth slows." The Fed raises interest rates to slow down spending across the economy, partly by signaling to markets that they're taking the problem seriously, which creates an expectation that inflation will fall.
So they increased from around 3% to a peak of about 8% in October and this was happening as the Fed was, you know, hiking interest rates to combat inflation.
The FED has made it really clear that they're pivoting from rate heights to rate cuts now.
However, tech stocks took a hit once the Fed started raising rates in 2022.
Central banks like the Fed or the Bank of England or the European Central Bank...
When you look at Trump's big, beautiful tax bill, you're going to take on that much debt and you combine that with consumer price increases and tariffs, it really makes it hard for the Fed to cut rates and a combination of the instability and higher rates is not great for the IPO bond.
It really makes it hard for the Fed to cut rates.
And to understand what's happening over here is that you simply have to take a look at the balance sheet of the Fed.
And that's why you see that the balance sheet of the Fed was very stable at around 800 billion dollars.
That's because firing the Fed chair, who was supposed to be an independent steward of our financial system and our monetary policy, would create an issue that economists call...
Wall Street's message of abject panic must have gotten through to Trump because just a few hours after floating the idea, he told reporters that he was highly unlikely to fire the Fed chair,
Some of these countries, China, for example, hold large amounts of dollar-based assets like US treasuries that the Fed would be able to freeze.
Some of these countries, China, for example, hold large amounts of dollar-based assets like US Treasuries that the Fed would be able to freeze.
The president of the United States wants to fire the chairman of the Fed because he is not lowering down interest rates and it's costing the government hundreds of billions of dollars.
The President of the United States wants to fire the Chairman of the Fed because he is not lowering down interest rates and it's costing the government hundreds of billions of dollars.