Yes, the President of the United States did start his day on Thursday April 17 2025 by taunting Jerome Powell, the Chair of the Federal Reserve, the world’s most powerful central bank and anchor of the dollar system.
Why does the world have to jump every time Trump takes a leak [on social media]? He throws a ball, we chase it, and he watches the reaction (with a burger in one hand and a Coke in the other, while watching sympathetic TV channels) to a tweet! I guess because Trump rarely backs off, and only temporarily. As for Powell, his term is up in 13 months anyway. Trump will appoint a compliant successor. We're dealing with a Marvel supervillain here.
I would have never thought that they really dare to threaten to set in motion these judicial ramifications (although I once commented here how much it seemed - at least from afar, here in Europe - to resemble Hungary's unhinged political scheme to dismantle institutions which provide the independence of the press or the separation of powers according to Montesquieu).
I always thought if nothing was sacred then the smooth functioning of the markets was but apparently I was mistaken.
The discontinuation you and Cam alluded to in your latest Ones-and-Tooze- episode seems to continue.
Thanks for the heads up about how this is interconnected to 'get' the inner workings of the US- (and thus also in big parts the world economy)!
The last Chartbook- post had such a useful link for me too - 'Trade wars are class wars' is already on my to-read list.
Turkey's Erdoğan leads the way (again), as he has (up to about a year ago) constantly railed against "the interest rate lobby" (and replaced -- as is in his power -- several central bankers on this issue).
Because of trump’s latest actions am starting to wonder. How is it possible that trump has a mba? I think someone took his exams for him. It might even be possible that Trump doesn’t know how to read.
I have no use for Trump and his merry band of vandals, but nor do I have any for the supposed “independence” of the Fed, which I view as (by design) an aristocratic institution inimical to labour. I realize that my preference for a return to a unitary Treasury makes me very lonely in my heterodoxy, but the anti-democratic structure of the Fed strikes me as an abomination.
Trump can only manage the Executive Branch the way he managed his businesses; with grovelling, submissive and frightened loyalists who are extremely careful of every word they choose lest it offend the King.
Wild guess: Powell will not die on that hill. Trump admin is going for broke, whereas FED has a mandate for stability after all. Trump will continue to introduce batsh#t crazy EO's every week until something breaks. Plus the supply shock already baked in. I'd say as likely weeks as months, before FED has no choice but to do out-in-the-open stabilization. Won't dwell on whether it is rates or some variation of QE.
Why does the world have to jump every time Trump takes a leak [on social media]? He throws a ball, we chase it, and he watches the reaction (with a burger in one hand and a Coke in the other, while watching sympathetic TV channels) to a tweet! I guess because Trump rarely backs off, and only temporarily. As for Powell, his term is up in 13 months anyway. Trump will appoint a compliant successor. We're dealing with a Marvel supervillain here.
I would have never thought that they really dare to threaten to set in motion these judicial ramifications (although I once commented here how much it seemed - at least from afar, here in Europe - to resemble Hungary's unhinged political scheme to dismantle institutions which provide the independence of the press or the separation of powers according to Montesquieu).
I always thought if nothing was sacred then the smooth functioning of the markets was but apparently I was mistaken.
The discontinuation you and Cam alluded to in your latest Ones-and-Tooze- episode seems to continue.
Thanks for the heads up about how this is interconnected to 'get' the inner workings of the US- (and thus also in big parts the world economy)!
The last Chartbook- post had such a useful link for me too - 'Trade wars are class wars' is already on my to-read list.
I will head over to the Bloomberg- law podcast.
Thank you!
Turkey's Erdoğan leads the way (again), as he has (up to about a year ago) constantly railed against "the interest rate lobby" (and replaced -- as is in his power -- several central bankers on this issue).
America in free-fall. The Soviet Union under Andropov and Chernenko looked comparatively stable.
Probably that rare occasion when Joe Biden could be empathizing with Dump's characterization of Powell as 'Too Late'.
Because of trump’s latest actions am starting to wonder. How is it possible that trump has a mba? I think someone took his exams for him. It might even be possible that Trump doesn’t know how to read.
I have no use for Trump and his merry band of vandals, but nor do I have any for the supposed “independence” of the Fed, which I view as (by design) an aristocratic institution inimical to labour. I realize that my preference for a return to a unitary Treasury makes me very lonely in my heterodoxy, but the anti-democratic structure of the Fed strikes me as an abomination.
Trump can only manage the Executive Branch the way he managed his businesses; with grovelling, submissive and frightened loyalists who are extremely careful of every word they choose lest it offend the King.
Wild guess: Powell will not die on that hill. Trump admin is going for broke, whereas FED has a mandate for stability after all. Trump will continue to introduce batsh#t crazy EO's every week until something breaks. Plus the supply shock already baked in. I'd say as likely weeks as months, before FED has no choice but to do out-in-the-open stabilization. Won't dwell on whether it is rates or some variation of QE.