Currency Markets & Inflation

[RE]

While putting himself at odds with NATO over Denmark and Greenland will create interesting foreign policy problems, this is nothing compared to doing battle with Da Fed.  As we know, the Federal Reserve  isn't really a goobermint agency, it's a privately held corporation, owned by the TBTF banks.  Jp Morgan, Goldman Sachs, Citibank, BoA along with International Banks like Lloyds, the House of Rothschild, Credit Suisse also have interest.  They are supposed to be independent, which means El Trumpo can't ORDER the Chairman to lower interest rates.  He can fire him, but then he has to get a new one confirmed and the nominations are made by the member banks.

The other tactic if the Chairman won't kowtow to His Trumpness would be to try to get the Federal Reserve Act revoked and decertify da Fed.  That however is highly unlikely and DANGEROUS,  in two ways.  First is that the financial markets would go bonkers, the 2^nd is the JFK outcome.  One of the main theories behind the JFK assassination was that he was planning on getting rid of the fed after the Cuban Missile Crisis.

Even if Da Fed kowtows and drops a few basis points off the federal funds rate, they really don't have complete control because the Bond Vigilantes are reacting to the high debt load everyone has, and that lowers price.  Price goes down, yield goes up.

We'll have to see how the financial markets react to these first little parries.  Break out the popcorn.



https://www.axios.com/2025/01/24/trump-vs-the-fed-20

RE