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Donald Trump Threatens to Takeover Fed as President.

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Bloomberg and the Wall Street Journal

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are reporting that Donald Trump has big

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plans of for the Federal Reserve with

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his campaign and while there have been a

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lot of different plans circulating

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including the 2025 Heritage Foundation

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plan all of them seem to revolve around

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three important topics one firing Jerome

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Powell this is clearly a signal or a

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tool to indicate that anyone suffering

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from high interest rates today on their

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cars their credit cards Home Loans

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student loans whatever it may be should

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potentially see Donald Trump as somebody

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who is going to solve that issue by

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basically cutting off the head of the

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Leviathan now obviously the point of the

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Federal Reserve is to raise interest

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rates in a high inflation environment so

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some argue that this could also be

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Donald Trump's punishment for drum

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Powell allowing or enabling the high

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inflation to occur in the first first

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place now remember the goal in my videos

1:02

is always to be unbiased and neutral so

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I'm going to do my best here Jerome

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Powell has gotten the blessing from Joe

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Biden to continue doing as he pleases

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this is very normal is very normal well

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at least since about the Paul vulker era

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which is about 40 years ago for the

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Federal Reserve to have substantial

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political Independence and even though

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someone like the chairperson of the

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Federal Reserve can be a appointed by

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the president and confirmed by Congress

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the chairperson of the Federal Reserve

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generally makes decisions without regard

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to politics or elections now 50% of

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people hearing me say that are going to

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say bull crap they are going to try to

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manipulate the election this is also

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entirely possible although it is not

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something that we can outrightly prove

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consider the possibility that the

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Federal Reserve realizes they're going

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to lose their jobs and their

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independence if Donald Trump is elected

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is it then possible that the Federal

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Reserve rapidly Cuts interest rates

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before the election to preserve the

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independence of the Federal Reserve

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institution yes is it also possible that

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the Federal Reserve Cuts interest rates

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right before the election because

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something happens in the economy that

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forces them to do so but then it looks

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like they cut interest rates for

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political reasons yes is it also

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possible that the Federal Reserve does

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not cut interest rates at all this year

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and then still gets fired by Donald

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Trump next year if Donald Trump wins the

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election yes so all of these things can

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happen and so as someone watching we

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want to evaluate what are some potential

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outcomes if Donald Trump wins and ends

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up revamping the Federal Reserve to

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where the Federal Reserve has to consult

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with the sitting president starting in

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2025 before they make interest rates

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decisions well let's base this off of

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what the Wall Street Journal and uh

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Bloomberg and other sources are

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indicating first quick reminder today is

3:08

the expiration of that coupon code so

3:10

congratulations and shout out to all the

3:13

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3:36

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3:40

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3:42

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bundling up just email us at staff ATM

4:20

kevin.com so let's now imagine a

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potential reality where Donald Trump

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wins oh and remember that coupon code

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expires tonight where Donald Trump wins

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wins and then remove some of the Federal

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Reserve Independence well first we think

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jpow would get fired the next action

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that would likely happen is Donald Trump

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would try to do anything to actually

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weaken the US dollar one of the ways you

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can easily weaken the US dollar is by

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lowering interest rates so I would

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suspect that we would very rapidly get

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interest rate cuts and a substantially

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weaker dollar there are reasons why the

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dollar Falls in value when rates are

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lower it's not so important right now

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but basically people are attracted to

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investing in things with higher interest

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rates so therefore the currency offering

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that higher rate has more demand and

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goes up don't worry about that point is

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lower rates weaker dollar what does that

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do what potentially drives up the

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competitiveness of us businesses in a

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global economy a weaker local currency

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makes it easier to sell local products

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and services around the world whether

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those are data service products

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Machinery like we sell electrical

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Machinery to China yes we buy junk from

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China but we also export a lot of

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electrical Machinery to China this makes

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it easier for our manufacturing

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companies to sell products across the

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globe however it makes it more expensive

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for us as Travelers or purchasers of

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foreign goods and services to buy those

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goods and services makes it more

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expensive to go on vacation in Europe or

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the United Kingdom makes it more

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expensive to buy services from abroad

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maybe designers or work from homers or

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whatever in other countries a lot of

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folks though have an American America

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First approach and say forget that let

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other countries be more expensive and

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let's focus more on bringing

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manufacturing home to America and

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encouraging jobs in America there's a

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balance to all of this because obviously

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if the United States weakens it its

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currency it's possible you could set off

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a currency war and you could find

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weakening of currencies at other

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countries this could potentially set off

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an inflationary spiral which could lead

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the entire economy into an unfortunate

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situation where we would have to raise

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rates even higher than we've ever had to

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before go from say 5% to 10% or more

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like 19% like what we saw in the 80s and

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we create a nasty brutal Global

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recession so it's not all good though I

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will say fate loves irony and I've been

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saying since quite frankly the 2020

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election time frame when Biden and Trump

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were running against each other I've

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been saying the greatest irony would be

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that we end up getting a surge of

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inflation during a Biden Administration

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following all of the money printing that

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happened both under Trump and Biden and

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that that inflation would slowly start

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falling at the end of a Biden first term

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but the frustration of that inflation

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would lead to a return to Trump and then

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you get a plummet of inflation a

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potential plummet in interest rates in

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the short term but do you potentially

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then froth up an even larger bubble

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ignoring the part about the large larger

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bubble that

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irony is a potential reality and as Elon

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Musk Elon Musk likes to say fate loves

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irony so we'll see what happens but

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Donald Trump's plans are very clear now

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whether or not they're going to flip on

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those plans like they did the first time

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around in the first uh uh term that

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Donald Trump was President where they

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argued we're going to fire drum pow they

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ultimately didn't although drum pow did

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back down so it does make you wonder did

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he back down due to political pressure

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or what this was back in 2019 they

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started raising rates you ended up

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having a liquidity crisis in September

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of 2020 uh sorry 2019 and uh that was

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around the same time we started seeing

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rat stabilize again we didn't get hikes

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again starting in December of 2018 when

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we had a crisis in the stock market it's

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entirely possible uh that we end up

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seeing a softening drum pow and whether

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that's because of politics or not we'll

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see but we are expecting the Federal

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Reserve to pause their runoff of the Bal

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sheet to try to prevent some of that

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liquidity stress it's a little bit more

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complicated but the point is I want to

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ask you have you already used that

8:38

coupon code expiring tonight if not let

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me know in the comments link down below

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why let me know what you think about

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Donald Trump potentially taking over the

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Federal Reserve see you in the next one

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goodbye and good luck

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