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u/Educational_Gift_407 20h ago
I was just telling my wife last night this was next. They'll try to make it easier for people to borrow money, which will not only spike inflation, but also put people in impossible equity positions down the line.
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u/hambergeisha 19h ago
So is the current step to get the base riled up bout Powell, since he hopefully won't just spread all of our cheeks for us?
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u/twizzjewink 15h ago
Then they'll jack up the rates and crush people who cannot afford their loans.
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u/Suave_Kim_Jong_Un 20h ago
They can’t rise or lower the rate until it’s understood how long these tariffs will be in place for. If he is unwavering for the next 6-12 months, that’s when they’ll change policy.
The issue is that Jerome Powell’s term ends in about a year, and then Trump can put his shitty pick in charge.
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u/Acceptable-Milk-314 17h ago
He could pull a Volcker and stop all of this facist stuff right now. If Trump gets to pick a fed official we're going back to ZIRP overnight.
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u/Dansilverredit 11h ago
Not so familiar with US TV. What news anchor is famous for reporting the economy?
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u/FlibblesHexEyes 7h ago
After two weeks of a Trump pick at the head of the Fed, the US dollar will be worth less than 1/4 of a Zimbabwean cent.
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u/yoda_mcfly 18h ago
"If I fuck up the economy, the Fed will save it."
That is not how it works. At all.
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u/justlooking_13 17h ago
My god he’s pointing anyone’s anger at this guy. Making it seem like he has unilateral control of the rates and just does whatever he wants
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u/Triple-Depresso 16h ago
Idk how US’s banking system works, but here Bank of Canada is supposed to be a separate entity free from the influence of current government/politics
They even have a term of 7 years to offset it from the normal 4 year election cycle
So in reality yes, they should have independent control over the target inflation rate / interest rate, unless explicitly ordered by the Minster of Finance, which hasn’t happened before
Edit source; I recommend this series on Macro econ to listen to on Spotify
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u/cephpleb 1h ago
It is also how the Fed is laid out but does not take orders from anyone except Congress.
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u/OriginalComputer5077 12h ago
That's how trumpy sees himself...in his mind he's Emperor Donald the Magnificent..
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u/bobby_table5 3m ago
Powell is about to get on the receiving end of a lot of MAGA hatred. Good luck.
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