Valuetainment - April 08, 2025


“Trump Has Met His Match” – Trump DEMANDS Powell Cut Rates As Fed Face-Off Turns UGLY!


Episode Stats

Length

10 minutes

Words per Minute

188.05763

Word Count

1,897

Sentence Count

169


Summary


Transcript

00:00:00.000 Powell predicts when Americans will feel ripple effects from Trump's global tariffs.
00:00:04.980 Rob, if you got this clip, I think you got a clip on this, if you can play,
00:00:08.560 because Trump calls for federal, feds Powell to cut interest rates and stop playing politics.
00:00:14.400 That's what Trump said, okay?
00:00:16.060 On the same exact day when Trump says this, okay,
00:00:20.300 President Trump urged Federal General Powell to cut the rates on Friday on Truth Social.
00:00:24.400 This would be perfect time for Federal Jerome Powell to cut interest rates.
00:00:28.240 Energy prices are down, interest rates are down, inflation is down, even egg is down 69%,
00:00:34.320 and jobs are up, urging, cut interest rates, Jerome, and stop playing politics.
00:00:38.980 That's Trump, and this is what Jerome Powell said.
00:00:41.080 Go ahead and play that clip, Rob.
00:00:43.080 We have stressed that it will be very difficult to assess the likely economic effects of higher tariffs
00:00:48.520 until there is greater certainty about the details, such as what will be tariffed,
00:00:53.080 at what level and for what duration, and the extent of any retaliation from our trading partners.
00:00:59.160 While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected.
00:01:06.220 And the same is likely to be true of the economic effects, which will include higher inflation and slower growth.
00:01:11.740 The size and duration of these effects remains uncertain.
00:01:17.040 While tariffs are highly likely to generate at least a temporary rise in inflation,
00:01:21.520 it's also possible that the effects could be more persistent.
00:01:25.680 Avoiding that outcome would depend on keeping longer-term inflation expectations well anchored,
00:01:30.160 on the size of the effects, and on how long it takes for them to pass through fully to prices.
00:01:34.560 Our obligation is to keep longer-term inflation expectations well anchored
00:01:40.360 and to make certain that a one-time increase in the price level does not become an ongoing inflation problem.
00:01:47.860 We'll continue to carefully monitor the incoming data, the evolving outlook, and the balance of risks.
00:01:53.200 We're well positioned to wait for greater clarity before considering any adjustments to our policy stance.
00:01:58.800 It is too soon to say what will be the appropriate path for monetary policy.
00:02:04.560 Tom.
00:02:08.340 Excuse me.
00:02:09.780 Tom, I just said your name.
00:02:12.240 Brandon, go ahead.
00:02:12.940 Tom's getting very emotional over Jerome Powell.
00:02:15.120 Give me one second.
00:02:16.300 Yeah, yeah, so I got you.
00:02:17.620 So with this, I think that we don't need to cut rates right now because I think we're going to take care of the inflation just fine
00:02:24.120 with what's going to happen with the market.
00:02:25.460 So I think just as a result of the market going down, like oil's already below $60 a barrel,
00:02:29.440 so inflation's going to go down.
00:02:30.600 One, I don't understand how people are trying to make the argument that tariffs are both going to make the stock market go down
00:02:35.060 and cause inflation.
00:02:36.180 Like, no, we're not going to have inflation if the stock market's going down.
00:02:38.360 That's one thing.
00:02:39.300 Two, I don't like Trump telling the Fed what to do with the rates,
00:02:42.440 and I absolutely despise the fact that the Fed controls the rates.
00:02:45.400 I think that's the most communist thing ever, that we have this weird, like, company,
00:02:49.620 this weird private company controlling the price of money for our entire country.
00:02:52.980 I think that the 10-year Treasury should be what we base things off of in terms of interest rates
00:02:56.820 because I think that's the market telling you what the rate is rather than some weird governing body
00:03:00.980 telling you what the price of money should be.
00:03:03.540 So you don't like the fact that Trump's telling Fed, but you also don't like the fact that they dictate it.
00:03:09.100 Yeah.
00:03:09.220 So what would you like ideally to happen?
00:03:10.920 So as I just said, 10-year Treasury should basically act as the Fed's federal funds rate
00:03:15.700 because that's the market telling you that, you know, the market buys and sells.
00:03:18.520 The Treasury market's probably the smartest group of money in the world.
00:03:20.660 So I think that's, like, a better market-based way of saying what the price of money should be
00:03:24.160 instead of Powell just going in and giving his opinion.
00:03:26.620 Tom?
00:03:27.440 Well, what was interesting was the last thing he said,
00:03:29.940 it's too early to determine if these economic forces have impacted monetary policy.
00:03:36.400 He's talking back to the president.
00:03:38.120 The president's saying, you've got to do this.
00:03:39.320 You've got to do this.
00:03:39.960 He said, it's too early to do it.
00:03:41.940 Well, May 6th and 7th is what they're all aiming at.
00:03:44.680 Write those down.
00:03:45.520 May 6th and 7th, June 17th, 18th.
00:03:47.580 Those are the next two meetings of the Fed.
00:03:49.780 May 6th and 7th is coming up.
00:03:51.000 We're less than a month away now.
00:03:52.100 We're just under a month away.
00:03:53.800 And what Trump wants is, hey, look at all this mayhem.
00:03:59.240 Give me a quarter point.
00:04:01.080 Better yet, give me a half point.
00:04:02.240 That won't happen.
00:04:03.200 But give me a quarter point.
00:04:04.480 And the Fed Board of Governors, it ticked up yesterday where it suddenly was over 25% chance.
00:04:10.640 Like they were all in sub voting.
00:04:12.600 You know, the dot chart.
00:04:14.140 All of a sudden it was like a little bit high.
00:04:17.080 And so maybe there's a 30% chance in May.
00:04:19.600 So what Trump is trying to do is put political pressure on the Fed to look at all of these other statistics and say, yep, let's give a quarter point.
00:04:31.640 Because what does that do?
00:04:32.960 That lets businesses borrow at a lower rate.
00:04:36.240 That lets them borrow money more.
00:04:37.800 And maybe that puts a little more pressure, deeper grok here, on the 10-year or the 30-year in the bond market, which will help mortgages go down.
00:04:46.660 Because right now mortgages have got one of the highest spreads they've had in a while.
00:04:50.780 In other words, the bank on the 30-year fixed, I think right now, is 6.5, depending on what bank you look at, right around.
00:04:57.080 And Trump wants to see 5.875.
00:05:01.460 He wants to see a 5.
00:05:02.900 Because people say 5.875 is the mental barrier that I'm getting a 5 rate.
00:05:12.160 And so take that and do it with what you will.
00:05:15.480 But Trump wants to get a cut on May 6th and 7th, definitely on June 17th, 18th.
00:05:21.620 Adam.
00:05:21.880 Well, you know, there's a song that goes, you can't always get what you want.
00:05:27.080 But if you try some time, you get what you need.
00:05:30.300 With Jerome Powell, Trump has met his match.
00:05:34.320 Who appointed Jerome Powell the chairman of the Fed?
00:05:37.160 Well, in 2018, Trump did.
00:05:39.820 And for seven years now, Trump's been trying to dictate, mandate, criticize, condemn Powell.
00:05:48.400 And Powell's just been like, nah, I'm good, bro.
00:05:53.060 And just does what he wants.
00:05:56.240 Now, you can criticize Powell.
00:05:58.020 You could say he's doing a good job, he's doing a bad job.
00:05:59.860 In my opinion, he's doing a very steady, eddy job.
00:06:03.480 So I love the fact that the president can't just control the chairman of the Fed.
00:06:09.240 So it's called polarity.
00:06:11.500 You know, Trump is all gas.
00:06:12.960 Jerome Powell might be the brakes.
00:06:14.760 Right?
00:06:15.120 Thunder and lightning, logic and emotion, order and chaos.
00:06:18.240 Trump wants to go, go, go, go, go.
00:06:19.900 At some point, someone needs to be like, relax.
00:06:22.800 I got this thing over here.
00:06:24.140 We don't want Trump just dictating everything that's going on in this country.
00:06:28.640 We want someone saying, well, look, have you thought about this?
00:06:31.460 I don't know about that.
00:06:32.460 So I'm totally in favor of Jerome Powell doing what's best for America.
00:06:37.860 And Trump will also think do what's best for America.
00:06:41.680 And hopefully the two meet in the middle.
00:06:43.280 But until then, I'm cool with Jerome Powell holding the line.
00:06:47.040 Is the Fed, so they don't, who do they answer to?
00:06:49.520 Because isn't it an unelected body?
00:06:52.140 It's the bank.
00:06:52.740 Like Citibank, JPMorgan Chase.
00:06:54.860 They're not elected.
00:06:56.800 They're chosen, but they answer to themselves.
00:06:58.740 They're nominated and then elected, and then Jerome Powell has his own term.
00:07:03.020 And the president cannot fire him the same way he can fire all of the cabinet members.
00:07:08.040 He's saying, because most every cabinet member resigns before they're fired when you change presidents.
00:07:13.240 Jerome Powell, he's not that way.
00:07:16.000 He has a term that he serves out.
00:07:18.280 Got you.
00:07:18.900 It's a 10-year term, right?
00:07:20.080 I'm just curious, because Brandon makes a good point.
00:07:22.880 It's like, who are they answering to?
00:07:26.440 How do they have that much control?
00:07:28.480 And I'm not saying, I wish Trump could fire anybody or whatever, but if you're just on.
00:07:32.000 Well, this goes all the way back to, you've got to read Jekyll Island.
00:07:35.680 The least at Jekyll Island.
00:07:36.780 We hosted an event at Jekyll Island in the room where the Federal Reserve got started.
00:07:41.340 It's a compound.
00:07:42.380 It's a very interesting, very weird place filled with trillions of mosquitoes.
00:07:46.980 If you go to that restaurant right by the water, you're going to be bit from head to toe if you're at this property.
00:07:53.340 But there's a lot of history to this place.
00:07:54.780 Anyways, we're at the end of it, guys.
00:07:56.560 A couple things.
00:07:57.320 This cigar lounge thing, this weekend, last weekend, prior weekend, it's been very, very busy.
00:08:03.460 Very interesting.
00:08:04.360 A lot of fun.
00:08:05.340 This last Friday night, this place had a lot of interesting guests that have been showing up a lot.
00:08:10.840 Rob, if you can pull up this clip here with what this, this is a highlight from the last couple weeks.
00:08:15.060 Go for it, Rob.
00:08:17.560 Do we have audio?
00:08:19.640 Right there.
00:08:20.140 The audio is paused, Rob.
00:08:21.160 Can you go back?
00:08:22.740 Rob, can you go back?
00:08:23.660 Go for it.
00:08:24.100 Good looking, people.
00:08:41.440 Good conversation.
00:08:42.580 Sports.
00:08:44.000 Football players.
00:08:45.220 NBA players.
00:08:46.200 Producers.
00:08:46.800 People showing up business people all over the place.
00:08:53.240 Wow.
00:08:53.960 Members only, guys.
00:08:55.140 It's a very, very exciting.
00:08:57.700 Three tiers of membership.
00:08:58.700 Silver, gold, and platinum.
00:09:00.220 Rob, what is the website you go to to apply?
00:09:04.020 Do you have the website to the boardroom?
00:09:05.540 BoardroomCigarLounge.com.
00:09:06.180 Is that the QR code right there?
00:09:07.440 Yes, that's the QR code.
00:09:08.580 Can you check to see what the website is so I can say to the Spotify audience?
00:09:11.020 Yep, it's BoardroomCigarLounge.com.
00:09:15.660 BoardroomCigarLounge.com.
00:09:17.540 BoardroomCigarLounge.com.
00:09:18.880 We had a person become a member the other day that's not even from the States, from Brazil.
00:09:22.020 We have people internationally becoming members of this place.
00:09:24.900 And to come and visit, there's benefits to platinum.
00:09:27.280 We have an announcement to be made here soon for a live event there.
00:09:30.800 But anyways, if you do want to be a member, everybody, there's no phones allowed in this
00:09:35.160 place when you get in.
00:09:36.080 Nobody can have a phone.
00:09:37.600 No one's taking pictures.
00:09:39.680 Everyone's asking and saying, hey, I want to exchange numbers with this person.
00:09:42.200 What do I do?
00:09:43.140 Back in the 80s, you would write it down.
00:09:45.480 So grab a paper and pen.
00:09:46.380 It's really cool.
00:09:47.420 And there's a lot of new surprises.
00:09:49.100 Members know about this.
00:09:50.060 If you want to find out more, apply.
00:09:52.220 Everybody goes through a background check.
00:09:53.740 And then some of you guys will get a chance to be there.
00:09:56.080 And I'm there quite often.
00:09:57.720 And we'll get a chance to have a conversation as well.
00:09:59.520 If you enjoyed this video, you want to watch more videos like this, click here.
00:10:02.460 And if you want to watch the entire podcast, click here.