Hello everybody and thank you for tuning in to the weekly report.

To Make America Great Again, separate money and state.

Delivering emergency price relief for American families and defeating the cost of living crisis

is the title of one of the many executive orders President Trump issued in his first week back in the Oval Office.

This executive order directs federal agencies to deliver emergency price relief to the American people by reducing federal regulations

that increase the cost or limit the supply of health care, housing, energy,

and other goods and services. Repealing regulations is an effective way to reduce costs

and increase supply in the affected industries. However, the price increases caused by regulations are sector-specific. Economy-wide price

increases are caused by the Federal Reserve. Widespread price increases are the result of

inflation. Inflation occurs when the central bank lowers interest rates by increasing the money supply.

In his remarks by video on Thursday before the World Economic Forum's yearly meeting in

Davos, Switzerland, President Trump said he would soon meet with Federal Reserve Chairman Jerome Powell to demand

the Fed cut interest rates in order to help Americans cope with high prices.

Pumping more money into the economy may give some consumers a temporary boost in purchasing

power, but a long-term effect of the cut will be further erosion of most

American standard of living as the influx of new money causes the dollar to lose value.

The short-term benefits of any increase of the money supply and reduction in interest rates are mostly felt by the well-off

since they receive the new money before other Americans.

So they enjoy increased purchasing power

before the Fed's inflationary policies cause prices to rise.

Interest rates are the price of money.

As with all prices, interest rates inform market actors about the market conditions.

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