🚨 BREAKING: The Fed is set to cut interest rates for the first time in 2025 — after months of pressure from President Trump.
Markets expect a 25-point cut — about 1/12 of what's needed — as job creation collapses...in large part due to the Fed's much-too-high rates.
THREAD 🧵
Markets expect a 25-point cut — about 1/12 of what's needed — as job creation collapses...in large part due to the Fed's much-too-high rates.
THREAD 🧵
2/ The jobs picture is grim:
– August: only 22,000 jobs added
– July: revised to 79,000
– June: revised down, 13,000 jobs LOST
Weak labor markets are forcing Powell’s hand. But it's his fault: he's kept rates high to hurt Trump, while relying on bogus BLS data on jobs.
– August: only 22,000 jobs added
– July: revised to 79,000
– June: revised down, 13,000 jobs LOST
Weak labor markets are forcing Powell’s hand. But it's his fault: he's kept rates high to hurt Trump, while relying on bogus BLS data on jobs.
3/ Trump has brought in pledges of more than $10 TRILLION in new investment, mostly foreign, to build huge new factories across America.
But that will take time. The economy needs relief NOW.
Yet Powell played politics, cutting to help Kamala last year, hiking to hurt Trump.
But that will take time. The economy needs relief NOW.
Yet Powell played politics, cutting to help Kamala last year, hiking to hurt Trump.
4/ The Trump factor:
– Trump wants lower rates to spur growth
– Fed officials divided over tariffs: short-term inflation bump vs. long-term strength
– Powell admitted: without tariffs, the Fed would have cut earlier.
He was deliberately trying to torpedo the duly-elected President's signature economic policy.
– Trump wants lower rates to spur growth
– Fed officials divided over tariffs: short-term inflation bump vs. long-term strength
– Powell admitted: without tariffs, the Fed would have cut earlier.
He was deliberately trying to torpedo the duly-elected President's signature economic policy.
5/ This is vital for the economy. It's also a big win for Trump.
He demanded rate cuts to bring growth & ease the debt burden.
Lower rates mean cheaper mortgages, cheaper car loans, & cheaper payments on the national debt.
Trump was right. The Fed was wrong.
And Trump won.
He demanded rate cuts to bring growth & ease the debt burden.
Lower rates mean cheaper mortgages, cheaper car loans, & cheaper payments on the national debt.
Trump was right. The Fed was wrong.
And Trump won.
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