Investors, not the Fed, control the interest rates that matter most
to businesses and consumers. They might demand higher returns if the
central bank’s independence comes into question.
By Ben Casselman
July 17, 2025, 5:03 a.m. ET
President Trump wants the Federal Reserve to lower interest rates.
Firing Jerome H. Powell, the Fed chair, would have precisely the
opposite effect, pushing up costs for home buyers, businesses and
other borrowers.
Mr. Trump in recent days has intensified his long-running attacks on
Mr. Powell, whom he has criticized for holding interest rates at a
relatively high level even as inflation has cooled and economic
growth has slowed. On Tuesday, the president asked a group of House Republicans whether he should fire Mr. Powell, and showed off a draft
of a letter that would do so.
Asked on Wednesday whether he intended to fire Mr. Powell, Mr. Trump
said he had no immediate plans for a removal, though he refused to
rule it out. If he took such a step, it is unclear whether he would
succeed. Mr. Powell has indicated his intention to serve out his term
as chair, and many legal experts say the law is on his side.
Even if Mr. Trump did manage to oust Mr. Powell, the move might prove counterproductive. A new chair might be able to persuade enough other
Fed officials to lower the short-term interest rates that the central
bank directly controls. But the rates that matter to most borrowers
are long-term rates, particularly those on 10-year and 30-year
federal government bonds, which are the basis for what borrowers pay
for mortgages, auto loans and lines of credit for most businesses.
In the second paragraph, it reads "...even as inflation has
cooled..." But inflation just surged higher, thanks to President
Fuckwit's economy-destroying tariffs. Lowering short-term interest
rates would increase borrowing and spending, and the increase in
spending would push inflation higher still.
Trump and his fucking economic clowns just don't know what they're
doing.
Rudy Canoza wrote:
Investors, not the Fed, control the interest rates that matter mosthttps://www.nytimes.com/2025/07/17/business/trump-powell-federal-reserve-higher-rates.html
to businesses and consumers. They might demand higher returns if the
central bank’s independence comes into question.
By Ben Casselman
July 17, 2025, 5:03 a.m. ET
President Trump wants the Federal Reserve to lower interest rates.
Firing Jerome H. Powell, the Fed chair, would have precisely the
opposite effect, pushing up costs for home buyers, businesses and
other borrowers.
Mr. Trump in recent days has intensified his long-running attacks on
Mr. Powell, whom he has criticized for holding interest rates at a
relatively high level even as inflation has cooled and economic
growth has slowed. On Tuesday, the president asked a group of House
Republicans whether he should fire Mr. Powell, and showed off a draft
of a letter that would do so.
Asked on Wednesday whether he intended to fire Mr. Powell, Mr. Trump
said he had no immediate plans for a removal, though he refused to
rule it out. If he took such a step, it is unclear whether he would
succeed. Mr. Powell has indicated his intention to serve out his term
as chair, and many legal experts say the law is on his side.
Even if Mr. Trump did manage to oust Mr. Powell, the move might prove
counterproductive. A new chair might be able to persuade enough other
Fed officials to lower the short-term interest rates that the central
bank directly controls. But the rates that matter to most borrowers
are long-term rates, particularly those on 10-year and 30-year
federal government bonds, which are the basis for what borrowers pay
for mortgages, auto loans and lines of credit for most businesses.
In the second paragraph, it reads "...even as inflation has
cooled..." But inflation just surged higher, thanks to President
Fuckwit's economy-destroying tariffs. Lowering short-term interest
rates would increase borrowing and spending, and the increase in
spending would push inflation higher still.
Trump and his fucking economic clowns just don't know what they're
doing.
OMG, what a stupid pack of clueless clowns!
On 7/17/2025 10:47 AM, Henderson wrote:
Rudy Canoza wrote:
Investors, not the Fed, control the interest rates that matter
most to businesses and consumers. They might demand higher
returns if the central bank’s independence comes into question.
By Ben Casselman
July 17, 2025, 5:03 a.m. ET
President Trump wants the Federal Reserve to lower interest rates.
Firing Jerome H. Powell, the Fed chair, would have precisely the
opposite effect, pushing up costs for home buyers, businesses and
other borrowers.
Mr. Trump in recent days has intensified his long-running attacks
on Mr. Powell, whom he has criticized for holding interest rates
at a relatively high level even as inflation has cooled and
economic growth has slowed. On Tuesday, the president asked a
group of House Republicans whether he should fire Mr. Powell, and
showed off a draft of a letter that would do so.
Asked on Wednesday whether he intended to fire Mr. Powell, Mr.
Trump said he had no immediate plans for a removal, though he
refused to rule it out. If he took such a step, it is unclear
whether he would succeed. Mr. Powell has indicated his intention
to serve out his term as chair, and many legal experts say the
law is on his side.
Even if Mr. Trump did manage to oust Mr. Powell, the move might
prove counterproductive. A new chair might be able to persuade
enough other Fed officials to lower the short-term interest rates
that the central bank directly controls. But the rates that
matter to most borrowers are long-term rates, particularly those
on 10-year and 30-year federal government bonds, which are the
basis for what borrowers pay for mortgages, auto loans and lines
of credit for most businesses.
In the second paragraph, it reads "...even as inflation has
cooled..." But inflation just surged higher, thanks to President Fuckwit's economy-destroying tariffs. Lowering short-term interest
rates would increase borrowing and spending, and the increase in
spending would push inflation higher still.
Trump and his fucking economic clowns just don't know what they're
doing.
OMG, what a stupid pack of clueless clowns!
That fucking clown Bessent isn't even the polished liar that Noem and
Bondi and Rubio are. Every time I see him testilying before a
congressional committee, he has an embarrassingly halting,
fumble-fucking delivery.
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