[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Heath Mayo [@HeathMayo](/creator/twitter/HeathMayo) on x 81.6K followers Created: 2025-07-16 19:34:43 UTC The Fed’s main function is to manage the country’s money supply and interest rates to promote a STABLE economy with low inflation and maximum employment. Key to that is ensuring the credibility of the fiscal system. If the Fed were to be politicized, the consequences would be too numerous to list. But here are just a few: If markets believed the White House could pressure the Fed to keep interest rates artificially low — especially ahead of elections — then… • Inflation expectations would rise. • Investors would demand higher yields on Treasury bonds. • Confidence in the Fed’s ability to stabilize the economy would erode. Capital could also flee to countries with more credible, independent monetary authorities. That would… • Increase demand for other currencies. • Cause dollar depreciation in foreign exchange markets. • Lead to higher import prices, further fueling inflation. Alongside increased federal spending, ending the Fed’s independence will also spark concerns about the government’s fiscal solvency, which may: • Trigger credit rating downgrades. • Push bond yields higher (reflecting increased risk). • Weaken the dollar further by raising concerns about fiscal sustainability. Trump and his team have no idea what they are messing with here. XXXXX engagements  **Related Topics** [white house](/topic/white-house) [fed](/topic/fed) [inflation](/topic/inflation) [central bank actions](/topic/central-bank-actions) [money](/topic/money) [federal reserve](/topic/federal-reserve) [Post Link](https://x.com/HeathMayo/status/1945567792926691460)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Heath Mayo @HeathMayo on x 81.6K followers
Created: 2025-07-16 19:34:43 UTC
The Fed’s main function is to manage the country’s money supply and interest rates to promote a STABLE economy with low inflation and maximum employment. Key to that is ensuring the credibility of the fiscal system. If the Fed were to be politicized, the consequences would be too numerous to list. But here are just a few:
If markets believed the White House could pressure the Fed to keep interest rates artificially low — especially ahead of elections — then…
• Inflation expectations would rise. • Investors would demand higher yields on Treasury bonds. • Confidence in the Fed’s ability to stabilize the economy would erode.
Capital could also flee to countries with more credible, independent monetary authorities. That would…
• Increase demand for other currencies. • Cause dollar depreciation in foreign exchange markets. • Lead to higher import prices, further fueling inflation.
Alongside increased federal spending, ending the Fed’s independence will also spark concerns about the government’s fiscal solvency, which may:
• Trigger credit rating downgrades. • Push bond yields higher (reflecting increased risk). • Weaken the dollar further by raising concerns about fiscal sustainability.
Trump and his team have no idea what they are messing with here.
XXXXX engagements
Related Topics white house fed inflation central bank actions money federal reserve