Zaid

So Trump will get his chance to change the head of the Fed in just a few months.

But despite that, the DOJ is still going after the Fed and Jerome Powell and threatening the Fed's independence.

And honestly, this move could end up backfiring for Trump.

So what's my take here?

Well, the Federal Reserve and its independence plays a key role in how our economic system works today.

And Trump's plan to break that independence to lower rates could end up backfiring.

The more that Trump is seen as trying to control the Fed, the less credible the Fed becomes.

And if investors start to doubt the Fed's independence, they're gonna demand higher interest rates to compensate for that risk.

Now, look, I gotta say, the Fed isn't perfect, okay?

They've made mistakes in the past,

including recently in 2021 when they thought that inflation was transitory and they turned out to be wrong.

But having a politicized Federal Reserve that makes decisions based on election cycles instead of economic conditions could lead to a terrible economic situation.

So personally, I'm glad that Jerome Powell finally responded to Trump's threats.

But remember, Jerome Powell is only gonna be the Fed chair for a few more months.

Trump's handpicked Fed chair is gonna take over in May.

If the market sees the new Fed chair taking orders from the president, that's gonna shake the market's confidence that the Fed is independent.

Is that gonna be enough to spook the markets?

I guess we'll have to see.

Well, all right, guys, that's it for today's weekend deep dive.

Let us know in the comments on Spotify and YouTube on your thoughts about the Fed and its independence.