Rebel Capitalist News You Won't Believe This...
Jul 18, 2025
Delve into the intriguing discussion about Donald Trump's interest rate proposals and what firing Jerome Powell could mean for the economy. Explore the historical context of interest rates and analyze the ripple effects on financial markets, from treasury yields to currencies and commodities. The conversation sheds light on how drastic changes could reshape the economic landscape, making it a must-listen for anyone curious about the future of finance.
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Trump's Radical Interest Rate Push
- Donald Trump is pushing for an aggressive interest rate cut, possibly below 1%, even favoring negative rates.
- This stance implies a radical shift compared to historical Fed rate cuts.
Market Undervalues Trump's Moves
- The market currently prices a low chance for Trump firing Powell or major rate cuts near or below 1%.
- Trump’s unpredictability makes a 10-15% probability for these events more realistic than market odds.
Unprecedented Scale of Rate Cut Demanded
- Historically, the largest Fed rate cut was 1%, done during crises like the GFC and COVID.
- Trump demands at least a 3% cut, which is unprecedented by three times the largest previous cut.