Zaid

And they created emergency lending programs to prevent a total collapse.

And I remember seeing then Fed Chair Ben Bernanke on TV all the time.

Now today, most people agree that those aggressive measures by the Fed prevented an even worse outcome in 08.

And the most recent test the Fed faced was during COVID-19.

The Fed actually acted even faster than they did in 08.

They bought massive amounts of bonds and they set up emergency lending facilities almost overnight.

These aggressive moves by the Fed likely prevented a global economic collapse, but

It also led to 9% inflation.

And while inflation has come down significantly, it's still higher than the Fed's 2% target.

Which brings me to today and the unprecedented beef between President Trump and Fed Chair Jerome Powell.

President Trump has been pushing for lower interest rates since he returned to the Oval Office.

See, lowering rates generally juice the economy and the stock market.

It makes borrowing cheaper for businesses and homebuyers.

So that would be good politically for President Trump.

And to be fair, the Fed has been cutting interest rates.

They cut rates three times in the second half of 2025, bringing the Fed funds rate down to a range of 3.5 to 3.75%.

But Trump wants these rates to be even lower.

The problem, though, is that inflation is still elevated.

It's running at 2.7%, which is above the Fed's 2% target.

And Fed Chair Jerome Powell has signaled that the Fed is going to be cautious about cutting rates even further until they're confident that inflation is under control.