Ep. 2345 - Trump Declares War…On Jerome Powell
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What actions is President Trump taking against Jerome Powell?
The Trump DOJ seems to be targeting Fed Chair Jerome Powell. What's going on with that? Plus, we're joined by a vice admiral to talk about the latest in Iran and a spokesperson for the Department of Homeland Security to explain what ICE is doing in Minnesota. First, why do people just like you become DailyWare Plus members? Because when riots break out in Minneapolis, we send reporters into the chaos for investigative journalism that goes where others will not, for premium entertainment that actually means something like Real History with Matt Walsh premiering Monday, January 19th, and For the biggest swing we've ever taken, a full-scale cinematic epic, the Pendragon cycle Rise of the Merlin premiering January 22nd.
People join because this isn't just a subscription, it's community. People watching together, reading together, laughing, debating, pushing back, refusing to shut up or sit down. Go to dailywireplus.com and join right now. Well, everyone in the world of economics and in the markets is talking about President Trump's DOJ going after Jerome Powell, the Federal Reserve chairman. Now, again, Jerome Powell is leaving the Fed chairmanship next year anyway. And not only that, he is leaving the Federal Reserve entirely in January of twenty twenty eight. So it's somewhat confusing as to why the DOJ is going after Jerome Powell if all they have on him is that there are cost overruns in the rebuilding and reconstruction of the Federal Reserve building.
Nonetheless, The controversy is hot and heavy today. According to the Wall Street Journal, for years, Federal Reserve Chair Jerome Powell responded to President Trump's broad ties in ways that generally avoided escalation. That changed on Sunday night. In an extraordinary two-minute video message, Powell accused the administration of using the threat of criminal prosecution to pressure the Fed into lowering rates. He framed the Justice Department investigation as nothing less than a head-on challenge to the Fed's ability to operate free of political control. And of course, he is not the first Federal Reserve board member to be targeted by the DOJ. Lisa Cook has also been targeted by the DOJ over supposedly misfiling her mortgage forms, falsifying that it was a second mortgage when it was actually a first mortgage or whatever the case is.
The point that Powell is making is that it's kind of weird that the only people who seem to be cropping up in the DOJ list of people to investigate are people who are opposed to President Trump's agenda, which is lowering those interest rates. Now, as I've said before, artificially low interest rates are not a good thing. I understand that we've lived with those for a very long time in the United States. It's why everybody has a 3.5% mortgage. But the reality is that the interest rate, if it were allowed to free flow, if it were allowed to float where it should be, would actually ensure less uncreditworthiness in the market. It would prevent speculation. It would allow the market to naturally follow its ebbs and flows rather than creating these gigantic bubbles, which then pop.
And a lower interest rate said by the Federal Reserve right now, which effectively injects money into the supply, creates more speculative bubbles. Right now, we may already be in a speculative bubble with regard to AI, which we'll get to in a little while. And so lowering those interest rates as a matter of policy, I'm not sure it's so wise. But even if you were to think that the interest rates should be lowered, the reality is that political pressure on the Federal Reserve to lower the interest rates is is going to create enormous schisms in the economy. It's going to make people feel as though the central bank of the United States is operating with political motives in mind, purely political motives in mind, and that the interest rates actually are artificially low.
not because the Federal Reserve is getting it wrong, but because of political pressure. And once that happens, once monetary policy becomes a pure tool of whichever party is in power, you start to have a real problem because you can deflate your way out of problems, inflate your way into problems.
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Chapters
5 chapters
1
What actions is President Trump taking against Jerome Powell?
0:00–4:10
2
How is the DOJ's investigation of Powell perceived politically?
4:10–10:51
3
What are the implications of low interest rates on the economy?
10:51–17:53
4
How does the Federal Reserve's independence affect monetary policy?
17:53–27:36
5
What is the current economic situation in the U.S.?
27:36–49:22
Speakers
5 identifiedMore from The Ben Shapiro Show
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