TRUMP VS THE FED: THE WAR OVER INTEREST RATES
This isn’t just a fight over interest rates.
It’s a fight over who controls the price of money.
And Washington is turning up the heat.
Ten days before the Federal Reserve’s September 15–16 meeting, the Trump administration has launched an unusually broad public campaign demanding that the Fed stop raising rates — and, in some cases, cut them.
President Donald Trump.
Vice President JD Vance.
Treasury Secretary Scott Bessent.
Senior economic adviser Peter Navarro.
All pushing in the same direction.
LOWER RATES.
But the Fed has a problem.
Inflation hasn’t fucking disappeared.
The Federal Reserve’s target is 2%.
Core PCE inflation — the Fed’s preferred measure — is still running at slightly above 3% on a three-month annualized basis.
And Fed officials have warned that inflation has remained above target for years, with price pressures spreading beyond the effects of Trump’s tariffs and higher energy costs.
Kevin Warsh, the new Fed chair, has made his position clear:
Inflation matters.
At Jackson Hole, Warsh pointed to a disturbing statistic:
54% of 199 components in the PCE price measure had risen more than 3% over the previous 12 months.
That is not exactly the definition of victory.
Meanwhile, three Fed officials — Beth Hammack, Neel Kashkari and Lorie Logan — supported a 25-basis-point rate hike at the July meeting.
The Fed ultimately held rates steady.
Now the pressure is escalating.
Trump recently argued that because the U.S. economy is growing strongly, America should have the lowest interest rates in the world.
Then came something even more aggressive.
Trump threatened to halt trade with countries running trade surpluses with the United States unless the Federal Reserve lowers interest rates.
That crosses into dangerous territory.
Because tariffs are one thing.
Trying to use trade policy as leverage over monetary policy is another.
#Binance
$BTC
This isn’t just a fight over interest rates.
It’s a fight over who controls the price of money.
And Washington is turning up the heat.
Ten days before the Federal Reserve’s September 15–16 meeting, the Trump administration has launched an unusually broad public campaign demanding that the Fed stop raising rates — and, in some cases, cut them.
President Donald Trump.
Vice President JD Vance.
Treasury Secretary Scott Bessent.
Senior economic adviser Peter Navarro.
All pushing in the same direction.
LOWER RATES.
But the Fed has a problem.
Inflation hasn’t fucking disappeared.
The Federal Reserve’s target is 2%.
Core PCE inflation — the Fed’s preferred measure — is still running at slightly above 3% on a three-month annualized basis.
And Fed officials have warned that inflation has remained above target for years, with price pressures spreading beyond the effects of Trump’s tariffs and higher energy costs.
Kevin Warsh, the new Fed chair, has made his position clear:
Inflation matters.
At Jackson Hole, Warsh pointed to a disturbing statistic:
54% of 199 components in the PCE price measure had risen more than 3% over the previous 12 months.
That is not exactly the definition of victory.
Meanwhile, three Fed officials — Beth Hammack, Neel Kashkari and Lorie Logan — supported a 25-basis-point rate hike at the July meeting.
The Fed ultimately held rates steady.
Now the pressure is escalating.
Trump recently argued that because the U.S. economy is growing strongly, America should have the lowest interest rates in the world.
Then came something even more aggressive.
Trump threatened to halt trade with countries running trade surpluses with the United States unless the Federal Reserve lowers interest rates.
That crosses into dangerous territory.
Because tariffs are one thing.
Trying to use trade policy as leverage over monetary policy is another.
#Binance
$BTC
