HousingWire Daily Logan Mohtashami: What is Trump's real plan to handle Jerome Powell?
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Jun 2, 2025 
Logan Mohtashami, a lead analyst known for his insights on the housing market, joins Editor in Chief Sarah Wheeler to discuss Trump’s intriguing idea of a shadow Fed president aimed at lowering interest rates. They analyze the complex relationship between Trump, Jerome Powell, and the bond market, contemplating the implications of potential Fed appointments. The conversation also explores how inflation and labor market dynamics affect Federal Reserve policies and housing market trends, offering a nuanced view of economic strategies.
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Trump's Shadow Fed President Plan
- Trump is preparing for a "shadow Fed president" to influence rates if Powell remains inflexible.
- He shared Logan Mohtashami's article publicly as part of a tactical move signaling this plan.
Bond Vigilantes Myth Explained
- Bond vigilantes, who supposedly force government spending discipline, have never effectively regulated U.S. debt.
- Bond traders prioritize profit over ideology, explaining stable yields despite large deficits.
Labor Market Drives Rates
- Inflation is nearing the low end of the target range, but the labor market strength keeps rates elevated.
- The Federal Reserve prioritizes labor market data over just inflation for rate decisions.