Watch the fed. Mark my words September. They're going to lower rates to help Kamala and Tim Walz. The Federal Reserve does seem poised to cut interest rates this month. September. The chair of the Federal Reserve, Jerome Powell, made clear that he was considering [00:00:16] a fed interest rate cut in September. And so it seems like that's going to happen. But is this really some conspiracy to help the Democratic ticket, or is this really something that the fed is doing because inflation has actually slowed down? [00:00:31] Now we'll get back to some of what Donald Trump has been saying about the Federal Reserve and the influence he has had on the Federal Reserve, dating back to when he was the president of the United States. But before we do, it is important to point out that Hannity is not [00:00:47] the only conservative who is claiming that the Federal Reserve is somehow colluding with the Democratic Party. Conservatives have been suspecting this, even when Biden was still the Democratic nominee for the presidential race. Here are Ben Shapiro and Larry Kudlow making similar accusations. [00:01:05] There is one sort of last hope for Joe Biden, and that is maybe Jerome Powell will save him. Investors don't expect the fed to lower interest rates in July, but they are looking at a September cut. I can't believe it. Why it's so convenient. It's just so convenient. I mean never mind the fact that again the inflation is still running 50% too high. [00:01:23] We got to cut those interest rates just in time for the election and hopefully Joe Biden to victory. But don't worry, it's all apolitical. They're going to try and shove a fed rate cut through as fast as humanly possible, because they are hoping that that will inflate the economy back into some semblance of serious job growth before the election. [00:01:41] Unless Jay Powell's Federal Reserve wants to completely politicize monetary policy and slash interest rates in order to juice the economy and reelect Joe Biden, unless they want to do that, there is absolutely no reason right now for the fed to take the foot off the brake [00:02:00] and slam down the accelerator if the fed were to force feed a rate cut, they would just be creamed, reamed, destroyed. It would be political. In order to juice the economy for Joe Biden, they could cut two times after the election. [00:02:16] Okay, November 5th is the election. So if they wanted to cut in November, December fed can't cut interest rates because if they do, it will be so political. Now I want to just quickly go back to what Ben Shapiro said in the beginning of that compilation video. It is true that Jerome Powell had announced that he was planning on cutting [00:02:34] interest rates in September at a time when inflation was still hot, which I thought was a little suspicious as well. - I don't. - Think it's suspicious really at. All. Okay, now. And by the way, let me just finish my point. So inflation has slowed down. And so now the argument is okay. [00:02:50] Well inflation has actually slowed down. So an interest rate cut makes sense. But I do agree that that announcement was made at a time when there really wasn't any indication that inflation was going to slow down. - Inflation was still high. - Hey, don't scroll away, come back? Come back. [00:03:06] Because before the video continues, we just want to urge you to lend your support to tight you power our honest reporting. You do it at t.com/team and we love you for it. No no. So look it's a constant balancing act. So the fed increases and decreases the interest rate to try to get two [00:03:24] things accomplished a strong economy that's booming but without inflation. Now that's a very tough balance to strike. But actually they've done a remarkable job over the last couple of decades. And I've got a lot of issues with the fed. And they got to stop printing money and just handing it over to Wall Street. [00:03:40] But on terms of inflation and growth, they've done a pretty spectacular job, by the way. They got inflation under control way better than the rest of the world did and and get almost no credit for it. And but I'm fair. As much as I was frustrated with Biden at different times and with the fed, [00:03:58] certainly at different times, they have done a pretty good job here. And when they're going to do these cuts, they signal them or increases. They signal them as far ahead as possible. So people are constantly the markets are constantly talking about should they cut or should they not cut. [00:04:13] The markets want them to cut because it leads to growth. So now there's so many inconsistencies with what the right wing media are saying here. Number one, they're like, well, if you do, it's dangerous. They shouldn't do the cut. If they do the cut, it'll lead to out of control inflation. Well isn't that what you want? [00:04:29] And why would the Democrats want to do out of control inflation right before the election. So you don't really believe that, do you? Right. And so, so they kind of betray themselves with their own talking points. Second of all, none of you are going to point out that Donald Trump [00:04:46] berated Jerome Powell and put political pressure on him to cut interest rates throughout his entire time in office. Yes, there was actually there was actually a period of time where Jerome Powell made it clear that he was going to increase interest rates under the Trump administration, and Trump did not like there was no backroom dealing with Trump. [00:05:05] He was pressuring Jerome Powell very publicly. In fact, we have the receipts. We have interest rates going up at a clip. That's much faster than certainly a lot of people, including myself, would have anticipated. I think the fed is out of control. I think what they're doing is wrong. [00:05:22] Under the Obama administration, you had a lot of help because they had very little interest. You know, when you talk about economies, our economy is far better than that. But we have actually we're paying interest. And they weren't they were using funny money. The president now, in an interview with The Washington Post, [00:05:38] has said, I'm doing deals and I'm not being accommodated by the fed. They're making a mistake because I have a gut, and my gut tells me more sometimes than anybody else's brain can ever tell me. I'm not even a little bit happy with my selection of Jay Powell. [00:05:54] - Not even a little bit for the president. - Is not pleased with Jay Powell. Here's the tweet from the president just a few seconds ago, saying what the market wanted to hear from Jay Powell and the Federal Reserve was that this was the beginning of a lengthy and aggressive rate cutting cycle which would keep pace with China, the European Union and other countries around the world. [00:06:11] As usual, Powell let us down, but at least he is ending quantitative tightening, which I which shouldn't have started in the first place. No inflation. We are winning anyway. I think you saw that yesterday with the stock market. No, I'm not happy with the fed because I think that they are following, not leading. [00:06:26] We should be leading. I'm not happy because if you look at the central banks of other, you know, other central banks, largely they're lower than us, their rate. So that very public bullying, if I remember correctly, led to Jerome [00:06:41] Powell caving to Donald Trump's demands. And by the way, the Federal Reserve is supposed to be totally independent of the executive branch or, you know, the the the political back and forth, like it's supposed to be an independent entity that makes decisions based on [00:06:58] how we're doing with inflation, how we're doing with unemployment and the like. Yeah. So to me, the right wing media is dishonesty here is telling So you didn't know that Donald Trump tried to bully Jerome Powell and you cover the news. [00:07:14] Larry Kudlow, you were in the administration, you know, for a fact that Donald Trump did that over and over and over again. Now you're pretending that, oh my God, I think Biden might be doing it for the first time two months before an election. [00:07:29] Can you believe how terrible the Democrats are? Oh, get off of it, man. Your own guy did it 2000 times, and now you're not going to tell your audience that? Of course not, because you're not being an honest actor. You're purposely misleading people. If anything, the markets think that this cut is coming too late. [00:07:45] They should have. That Powell should have acted earlier. Part of the problem here is that Biden is super weak. And so yeah, you could say, hey, no, he's doing the right thing by not pressuring Powell. They're supposed to be independent. But after Trump pressured him, if I was in charge, [00:08:01] I definitely would have pressured him. And so and I would have pressured him to cut earlier cutting two months before the election, I don't think is going to make any almost any difference. If they really wanted to affect the election, they would have cut it four months earlier. Okay. Giving it time for the economy to pick up and not just for the stock market [00:08:19] to pick up, but for real Americans to feel it in their pocketbooks with higher wages or more employment, etc.. And they chose not to do that because Biden is weak. So he didn't pressure Powell at all. It's the exact opposite of what Shapiro and Kudlow just told you. [00:08:35] Explain to me how lower interest rates would translate to higher wages for workers. We had insanely low interest rates beginning with the economic collapse of 2008, and our wages remain stagnant. So how does that make sense? So the reason why it's a balancing act, guys, is because you can't go too much in either direction because it creates different problems. [00:08:53] But the way that low interest rates create a stronger economy overall, again, it has other downsides, but in this context is once you lower the rates, people invest more because then it's easier to make a return because you [00:09:10] don't have to pay as much in financing for any project that you start or fund. So that's why when they increase the rates now all of a sudden your money costs more to finance a project, for example, one of the things it does is it ends all tech financing. [00:09:26] So tech has been in a lot of trouble ever since they increased the rates. So the tech companies and other, industries are going cut the rates, cut the rates, because otherwise we can't get funding. And so once they put funding into pick any random industry, agriculture or, [00:09:46] well, there's going to be investments. So they're going to create new projects that have people get hired and affect the supply and demand of the market. So wages go up because there's greater demand for jobs. So that's how that's traditionally why lower interest rates [00:10:02] lead to a better economy. But if you overdo it it stimulates the economy too much therefore thereby creating inflation. And who overdid it in interest rate cuts at the Fed Donald Trump he said cut, cut, cut. You just heard him with you and saw him with your own eyes. [00:10:18] Cut. I don't care if it's right or wrong. Just keep cutting. Right. And you know what that leads to in the long run? Inflation. This is simple economics. So. But did you hear anyone in right wing media pointing out to you that if you [00:10:35] keep interest rates too long, too low, for too long, it will lead to inflation? And that's what Trump did. And that was not the only reason, but part of the reason we had that booming inflation. No they never told you that. Right. Because they hide facts from you if it's inconvenient to their cause. 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