4.7 • 1K Ratings
🗓️ 18 July 2025
⏱️ 23 minutes
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0:00.0 | Hello for the rebel capitals. Hope you're well. So we've got big news coming out from the big man himself, Donald Trump. |
0:07.7 | You all know how he was calling for interest rates to go down by 300 basis points. One move, 3% down. But now he's taking it to a whole another level. And we got to combine this |
0:24.4 | with the fact that many insiders in the White House are saying that he's right on the brink |
0:29.6 | of firing Jerome Powell. And then we have to ask ourselves the question. And what if this plays out? |
0:36.7 | What if he does it? What if he gets in a yes |
0:39.7 | man and the yes man not just drop rates to three, excuse me, drops rates by three percent |
0:46.2 | from 4.25 to 1.25, but what if they drop rates even further and say, oh, George, this is just |
0:53.1 | crazy talk? Oh, is it? Let me show you this |
0:55.9 | headline from Fox News. Right here. Trump calls Fed Chair Powell a knucklehead, no surprise there, |
1:04.9 | says interest rates should be below 1%. So let's go over to the Fed Funds rate right now just to make sure we're all on the |
1:15.7 | same page. We'll go, you know, five-year chart here. So Fed funds, and this is really the only part of |
1:23.3 | the curve, they control, you know, it's more the front of the control the front of the curve excuse me |
1:28.6 | they control the curve does the fed funds rate have an impact sure the question is to what |
1:35.3 | degree and the overriding factor as you guys know is going to be growth inflation expectations |
1:39.9 | especially at the long end but the overnight rate the fed funds Fed funds rate, the Fed funds effective rate, FFR, back in |
1:47.5 | 2021, basically 0%. |
1:49.5 | And then Powell raises rates, we know that. |
1:52.8 | They pause like every other cycle, and they come down by 100 basis points. |
1:57.5 | And then they've hit the brakes since then. |
2:04.8 | So currently we're at the bottom of the range is 4.25%. So like I said, if we go down to 1.25, this would be Trump getting the 3% drop that he said |
2:15.2 | he wanted. |
2:16.6 | But now I think he's getting more, there's more |
... |
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