Fed Frenzy: Trump's Advisor Spills the Beans on Secret Meetings with Powell

🚨 Fed Frenzy: Trump’s Advisor Spills the Beans on Secret Meetings with Powell 🤫

Fed Frenzy: Trump’s Advisor Spills the Beans on Secret Meetings with Powell

Mon ami, Kevin Hassett, the director of the National Economic Council, has revealed that he is having “regular” meetings with Jerome Powell, the Federal Reserve chairman. Ah, mais oui, because we all know that the Federal Reserve is as independent as a French aristocrat at a royal ball.

During a recent appearance on CBS’ Face The Nation, the host asked Hassett if his meetings with the Federal Reserve chairman were to influence interest rates. Ah, the plot thickens! Hassett responded:

“Jerome Powell is an independent person. The Federal Reserve’s independence is respected. The point is the president’s opinion can also be heard — he is the president of the United States.”

Mon dieu, how quaint! The advisor added that long-term rates have already come down since the Trump administration took office and cited a 40 basis point reduction in 10-year Treasury rates as evidence that the market believes inflation is coming down. Ah, mais oui, because nothing says “inflation is under control” like a 40 basis point reduction.

Lower interest rates, c’est la vie! They are a bullish catalyst for cryptocurrencies and other risk-on asset classes, as access to cheap credit encourages market participants to borrow capital to purchase investments and businesses. Ah, but at what cost, mes amis?

Federal Reserve casts doubt on future rate cuts as inflation remains stubborn

On Feb. 11, Federal Reserve chairman Jerome Powell testified before the Senate Banking Committee and said that the central bank does not “need to be in a hurry” to adjust interest rates — casting doubt over future rate cuts in 2025. Ah, mais oui, because the Fed is as predictable as a French politician’s promise.

The US Bureau of Labor Statistics released its January 2024 Consumer Price Index report on Feb. 12, which showed higher-than-expected inflation figures. Ah, la la, inflation is alive and well!

According to the report, annual inflation hit 3% in January 2025 — a 0.1% increase over expectations — causing Bitcoin to fall below $95,000 as investors anticipated a high interest rate environment in the coming months. Ah, mais non, Bitcoin, why so glum?

Persistently stubborn inflation, a looming trade war, and other macroeconomic risks have made investors cautious about investing in risk-on assets like crypto. Ah, mais oui, because who needs risk when you can have stability?

The Chicago Mercantile Exchange’s (CME) FedWatch tool currently shows that only 3% of market participants believe the Federal Reserve will slash interest rates by 25 basis points at the Fed’s next meeting in March 2025. Ah, mais oui, because the Fed is as transparent as a French chef’s secret sauce.

2025-02-16 23:10

Federal Reserve casts doubt on future rate cuts as inflation remains stubborn

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