The Powers That Be: Daily Fed Up & Newsmaxed Out
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Apr 18, 2025 Bill Cohan, a prominent financial journalist and author of 'Dry Powder,' joins Peter to explore the turbulent relationship between Donald Trump and Fed Chair Jerome Powell. They dissect Trump's push for rate cuts amidst economic turmoil and the implications of potentially ousting Powell. Cohan also breaks down the rollercoaster journey of Newsmax's IPO, questioning its true value and the impact of Trump's media landscape on investors. This insightful discussion unveils the interplay of politics, monetary policy, and media chaos.
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Trump vs. Fed Independence
- Donald Trump wants Jerome Powell out because he favors low interest rates, benefiting borrowers like real estate developers.
- The Fed is independent to ensure it can act against political pressure, like Trump's tariffs causing inflation.
Tariffs Upend Fed Rate Cuts
- Wall Street expected two interest rate cuts in 2024, but Trump's tariff-driven inflation disrupts this view.
- Trump's actions risk destabilizing confidence in financial markets, possibly forcing the Fed into new quantitative easing.
Newsmax IPO Volatility Explained
- Newsmax's IPO lacked underwriting, causing extreme volatility and a rapid rise then crash in share price.
- Despite claims, Newsmax's audience and financial health remain unclear, while its Trump adjacency drives investor hype.
