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🗓️ 18 April 2025
⏱️ 6 minutes
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President Donald Trump has ramped up the pressure on Federal Reserve Chairman Jerome Powell for not cutting interest rates.
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0:00.0 | This is your wheelhouse, Jerry, because you're Mr. Economics. So the way the federal head of the |
0:07.1 | Federal Reserve works, if I understand it, is there's a board of governors of the Federal Reserve. |
0:13.1 | Real quick, in one minute, can you explain what the Federal Reserve actually does? |
0:16.6 | Let me just set interest rates for the country, right? Across the board for you can borrow money |
0:20.3 | for homes and loans and those kinds of things. |
0:22.6 | Yeah, it sets monetary policy. |
0:24.4 | There's a board of governors from that list of people. |
0:27.1 | It's like picking a pope, right? |
0:28.1 | It's got to be a cardinal that ascends, right? |
0:32.0 | From that list, the president will pick somebody. |
0:34.8 | That person then serves a four-year term at the advice and consent of the Senate. |
0:41.4 | So once you're in, you're in for a term. The president can't just arbitrarily willy-nilly pull you out of |
0:47.7 | that position. And our current guy was under Trump the first time, re-certified under Biden, |
0:53.6 | and now he's due in 2026 for a recertification |
0:56.8 | or whatever. And you should want, in theory, if you're going to have a Federal Reserve, which many |
1:00.8 | of us don't believe that, you know, that thing should really even exist. But you should want somebody |
1:05.0 | who is above politics, hence the four-year term. It's sort of like the, uh, the inspector general or the, um, the public access counselor |
1:14.5 | in the state of Indiana where they, you know, you, you serve and you want it to be across party lines |
1:19.5 | and it'll go from one term to the next. You don't want people in those positions playing politics. |
1:23.6 | So Trump is mad at Jerome Powell, the head of the Federal Reserve, because he is |
1:28.4 | refusing to cut interest rates. And I am totally 100 percent. I don't know where you are team |
1:32.5 | Powell on this because our monetary policy and the magical money printing factory is what got |
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