[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.]  Curious Mr. Fox [@CuriousMrFox101](/creator/twitter/CuriousMrFox101) on x XXX followers Created: 2025-07-22 22:22:34 UTC How Things Work: Jerome Powell vs. Donald Trump Why is Jerome Powell, the Federal Reserve Chair, standing firm against President Trump’s push to lower interest rates? It’s all about supply and demand, the heartbeat of economics. Trump’s tariffs, like a XX% tax on all imports or XXX% on Chinese goods, reduce supply by making it costlier for businesses to import goods, shrinking the availability of everything from electronics to raw materials. Meanwhile, low interest rates, as Trump wants, increase demand by making borrowing cheaper—think more loans for cars, homes, or business expansions. But Powell’s focus is the Fed’s dual mandate: keeping inflation near X% and maximizing employment. Cutting rates now could supercharge demand while supply is already squeezed by tariffs, risking an inflationary spike like the 1970s, when political pressure led to runaway prices. Picture a market where everyone’s rushing to buy, but there’s not enough to go around—prices skyrocket. That’s the risk Powell sees. Trump’s tariffs act like a supply shock, raising costs for businesses and consumers, which can force companies to cut production or pass on higher prices. If the Fed lowers rates, demand could surge further—more spending, more loans—while supply chains struggle to keep up. Powell’s team is holding rates steady (currently 4.25%–4.5%) because inflation is already at 2.4%, above the Fed’s X% target. By resisting Trump’s pressure, Powell aims to prevent demand from outpacing supply, which could push prices higher and destabilize the economy. This tug-of-war isn’t just about numbers; it’s about trust in the system. The Fed’s independence, earned after decades of lessons like Nixon’s meddling in the 1970s, allows Powell to prioritize data over politics. Cutting rates to appease Trump could erode the Fed’s credibility, spooking investors who might then demand higher returns on U.S. bonds, raising borrowing costs—the opposite of Trump’s goal. Powell’s strategy is patience: wait for clearer data on tariffs’ impact, keep demand in check, and protect against inflation. It’s economics 101—balance supply and demand to keep the economy steady. #FederalReserve #JeromePowell #DonaldTrump #InterestRates #Economics #Inflation #Tariffs #SupplyAndDemand #MonetaryPolicy XXX engagements  **Related Topics** [tax bracket](/topic/tax-bracket) [tariffs](/topic/tariffs) [rates](/topic/rates) [trumps](/topic/trumps) [federal reserve](/topic/federal-reserve) [donald trump](/topic/donald-trump) [powell](/topic/powell) [jerome powell](/topic/jerome-powell) [Post Link](https://x.com/CuriousMrFox101/status/1947784360842956847)
[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.]
Curious Mr. Fox @CuriousMrFox101 on x XXX followers
Created: 2025-07-22 22:22:34 UTC
How Things Work: Jerome Powell vs. Donald Trump
Why is Jerome Powell, the Federal Reserve Chair, standing firm against President Trump’s push to lower interest rates? It’s all about supply and demand, the heartbeat of economics.
Trump’s tariffs, like a XX% tax on all imports or XXX% on Chinese goods, reduce supply by making it costlier for businesses to import goods, shrinking the availability of everything from electronics to raw materials.
Meanwhile, low interest rates, as Trump wants, increase demand by making borrowing cheaper—think more loans for cars, homes, or business expansions.
But Powell’s focus is the Fed’s dual mandate: keeping inflation near X% and maximizing employment. Cutting rates now could supercharge demand while supply is already squeezed by tariffs, risking an inflationary spike like the 1970s, when political pressure led to runaway prices.
Picture a market where everyone’s rushing to buy, but there’s not enough to go around—prices skyrocket. That’s the risk Powell sees. Trump’s tariffs act like a supply shock, raising costs for businesses and consumers, which can force companies to cut production or pass on higher prices.
If the Fed lowers rates, demand could surge further—more spending, more loans—while supply chains struggle to keep up. Powell’s team is holding rates steady (currently 4.25%–4.5%) because inflation is already at 2.4%, above the Fed’s X% target. By resisting Trump’s pressure, Powell aims to prevent demand from outpacing supply, which could push prices higher and destabilize the economy.
This tug-of-war isn’t just about numbers; it’s about trust in the system. The Fed’s independence, earned after decades of lessons like Nixon’s meddling in the 1970s, allows Powell to prioritize data over politics. Cutting rates to appease Trump could erode the Fed’s credibility, spooking investors who might then demand higher returns on U.S. bonds, raising borrowing costs—the opposite of Trump’s goal.
Powell’s strategy is patience: wait for clearer data on tariffs’ impact, keep demand in check, and protect against inflation. It’s economics 101—balance supply and demand to keep the economy steady.
#FederalReserve #JeromePowell #DonaldTrump #InterestRates #Economics #Inflation #Tariffs #SupplyAndDemand #MonetaryPolicy
XXX engagements
Related Topics tax bracket tariffs rates trumps federal reserve donald trump powell jerome powell