Powell sees tariffs raising inflation and says Fed will wait before further rate moves

[u/Force_Hammer]

https://www.cnbc.com/2025/04/04/powell-sees-tariffs-raising-inflation-and-says-fed-will-wait-before-further-rate-moves.html

[u/Additional_Teacher45]

Trump and the Heritage Foundation want to dismantle the Fed so they can control interest rates.

They knew they couldn't do it immediately. They're trying to force Powell to lower rates so they can point at him and scream about what a bad job he's doing, and have reason to remove him.

But at this pace, Trump is going to lose support from and for his cult before he gains any leverage on the Fed. So he's either going to double down on more tariffs, or he's going to force Powell out illegally with an EO and no one will do anything about it.

[u/Just_Some_Statistic → u/Additional_Teacher45]

Or Powell nuts up and slaps interest rates up 10%

[u/Additional_Teacher45 → u/Just_Some_Statistic]

That would be enough leverage for Trump to play to his cult and sway the political base enough that they mostly agree with him removing Powell.

Doing nothing is the only move the Fed has available right now. We have to hope that Trump loses support before Powell has to move.

[u/Just_Some_Statistic → u/Additional_Teacher45]

Fair point, though I would say even doing nothing now leads to damage.

Either way, rates are going to have to go up again

[u/magnoliasmanor → u/Additional_Teacher45]

One could only hope.

[u/Less-Amount-1616 → u/Additional_Teacher45]

>he's going to force Powell out illegally with an EO

If Humphrey's Executor is overturned the idea of some quasi-governmental agency unaccountable to the executive branch is gone though. And the cogs are already turning towards that.