Drunk Real Estate 94. Trump’s Plan to Crash the Dollar? Inside the Mar-a-Lago Accord
Apr 24, 2025
Explore the clash between Trump and the Federal Reserve, as they consider the implications of a potential Mar-a-Lago Accord to weaken the dollar. Discover whether Trump can legally remove the Fed Chair and what that means for economic stability. Delve into tariffs, inflation, and the historical context of currency accords while the hosts share humorous takes on economics and personal experiences with drinks. It’s a wild ride through potential impacts on the global economy and the future of U.S. manufacturing!
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President's Fed Chair Removal Limits
- The president can legally remove the Federal Reserve Chair "for cause" under the Federal Reserve Act, though "cause" is unspecified.
- Supreme Court precedents suggest removal is difficult, especially given the Fed's unique multi-member structure.
Fed's Stagflation Dilemma
- The Fed faces a difficult stagflation choice between lowering rates to combat recession or raising them to control inflation.
- Trump's preferred stance will likely prioritize lower interest rates, potentially worsening inflation.
Mar-a-Lago Accord Overview
- The Mar-a-Lago Accord proposes weakening the US dollar via tariffs to restore manufacturing, share defense costs, and fix debt issues.
- It involves tiered tariffs incentivizing cooperation and restructures debt to lower US interest payments.