March 20, 2025 • 6 mins
Chris dives into politics and the Federal Reserve, unpacking Jay Powell’s latest Q&A. Despite media attempts to pit Powell against Trump’s tariffs, he stood firm—economy’s solid, unemployment’s low, and inflation’s easing. Fiscal prudence, not Fed moves, drives lower rates. www.watchdogonwallstreet.com
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Episode Transcript
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Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst and trader Chris Markowski.
Speaker 2 (00:16):
Politics and the Federal Reserve. I spent a lot of
time yesterday. I usually don't, honestly, I usually don't sit
and listen, uh to the you know, J Powell come out,
whoever's in charge of the Fed and give their entire
and question answer bit. Sometimes I bear a little bit
of mine. But I was curious this time around, because
(00:36):
you know, tariffs coming down the pike. The media, I
knew was going to be all over this, and I watched.
I watched the media every outlet out there, without exception,
every outlet out there was quite was quite like they
were just they were they were trying to bate Jay Powell,
trying to bait Jay Powell into going after Donald Trump
(00:58):
and his policies. And even today you take a look
around and you get, Yes, Nick Timorrows from the Wall
Street Journal, he's their fed whisper fed projection. See an
economy dramatically reset by Trump's election, not long ago, Federal
(01:19):
Reserve officials presume that twenty twenty five would simply be
about getting to the soft landing. Again, they're talking about tariffs.
I watched the entire thing. Tim and the Federal Reserve
came out and said that in their projections, they they
(01:39):
priced in what they felt Trump's tariffs would do to
the economy. And you take a look at the numbers.
And Jay Powell was emphatic yesterday saying that economy is growing,
unemployment is low, and he doesn't see any problems moving forward.
(02:02):
But you're watching again the media bend over backwards, uh,
to go after Trump's policies, every every single reporter out
there without fail. It was quite frankly, it was a
little bit annoying, to tell you the truth. Other you know,
Wall Street Journal, their editorial board none too happy about
tariffs and quite funk. I don't like tariff's either. I'm
(02:25):
not a fan of them either. Tariffs give the Fed
and inflation foil, basically saying that the Fed can blame
any sort of inflationary pressures on Donald Trump's tariffs. I mean,
so far, people, last time I checked, inflation is coming down.
(02:47):
What was it? Two? Three, weeks ago, do the Avian flu,
egg prices went through the roof. You watched the liberals
and the mainstream media have a collective egg freak out.
Now all of a sudden, egg prices are down almost
seventy Take a look at gasoline prices and you've watched
those that come down as well. I want to go back.
(03:12):
The fit, without a doubt, is tied into politics. You
just you can take a look at the backgrounds of
these people, how they normally vote, what party they're from.
They got four or five hundred economists that quite frankly,
they know they can't figure much of anything out. You know,
it's just, you know, inflation is transitory. They miss everything,
They miss everything politics. Let's go to the lead up
(03:35):
to twenty twenty four election. The Federal Reserve lowered rates.
They lowered rates by one hundred basis points. One hundred
basis points. Okay, why, I don't know. I don't know. Again,
even the mainstream media was kind of scratching their heads, saying,
(03:57):
by every metric out there by, you know, all of
the various different rules or benchmarks you normally use, the
Fed has no business lowering rates. This is going back
to the fall of this past year, and they're not wrong.
They're not wrong. So you had the FED lower interest
rates by one hundred basis points, you had the whoever
(04:20):
was running the Biden administration basically just dump cash into
the country in a myriad of different ways. And you're
not telling me that was im political, that wasn't there
to help Goosie economy, to help get Kamala Harris elected. No,
I'm sorry, you can't tell me otherwise, not not to
mention the fact your lowered rates by one hundred basis
(04:44):
points and the ten year treasury tenure treasury went one
hundred basis points in the opposite direction, which has never ever,
ever happened. Again, what is the lesson here? Well, you
know the FED has power, there's no doubt about out it,
but its power is limited. The reason why we've seen
(05:04):
rates come down, and take a look at the tenure
and how it's come down. Quite frankly, it has to
do with the fact that there's the idea, even though
again I'm I'm I'm skeptical, I'm hopeful but skeptical at
the same time, that we're going to start cutting spending,
we're going to start being more fiscally prudent. That without
(05:28):
a doubt Elon musk Is is right, is right for
you know, every every every trillion dollars you save. I mean,
I'm sorry, that's that's a that's one hundred basis points
to the downside as far as what we are spending
on our borrowing costs, and again that filters down to
(05:49):
what we spend on cars, homes, you know, whatever it
may be. That there's a bonus bonus for being fished prudent,
and that means your your risk comes down, that means
your interest rates come down. And that right now, that's
the direction we're heading in without the fad doing a
(06:11):
darn thing. I do. I get credit where credits do.
I've been very critical of Jay Powell. He didn't take
the bait. He didn't he didn't take the bait yesterday,
and it was actually quite forceful and pushing back in
regards to all of the reporters that were trying to
bait him into trying to uh cause a toss up
(06:32):
with with Donald Trump, because that's what they want it
they want conflict, they want and that's what they had.
That was their agenda going in there. Let's let's try
to create some sort of headline sad but true watchdog
on Wall street dot com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst and trader Chris Markowski.
Speaker 2 (00:16):
Politics and the Federal Reserve. I spent a lot of
time yesterday. I usually don't, honestly, I usually don't sit
and listen, uh to the you know, J Powell come out,
whoever's in charge of the Fed and give their entire
and question answer bit. Sometimes I bear a little bit
of mine. But I was curious this time around, because
(00:36):
you know, tariffs coming down the pike. The media, I
knew was going to be all over this, and I watched.
I watched the media every outlet out there, without exception,
every outlet out there was quite was quite like they
were just they were they were trying to bate Jay Powell,
trying to bait Jay Powell into going after Donald Trump
(00:58):
and his policies. And even today you take a look
around and you get, Yes, Nick Timorrows from the Wall
Street Journal, he's their fed whisper fed projection. See an
economy dramatically reset by Trump's election, not long ago, Federal
(01:19):
Reserve officials presume that twenty twenty five would simply be
about getting to the soft landing. Again, they're talking about tariffs.
I watched the entire thing. Tim and the Federal Reserve
came out and said that in their projections, they they
(01:39):
priced in what they felt Trump's tariffs would do to
the economy. And you take a look at the numbers.
And Jay Powell was emphatic yesterday saying that economy is growing,
unemployment is low, and he doesn't see any problems moving forward.
(02:02):
But you're watching again the media bend over backwards, uh,
to go after Trump's policies, every every single reporter out
there without fail. It was quite frankly, it was a
little bit annoying, to tell you the truth. Other you know,
Wall Street Journal, their editorial board none too happy about
tariffs and quite funk. I don't like tariff's either. I'm
(02:25):
not a fan of them either. Tariffs give the Fed
and inflation foil, basically saying that the Fed can blame
any sort of inflationary pressures on Donald Trump's tariffs. I mean,
so far, people, last time I checked, inflation is coming down.
(02:47):
What was it? Two? Three, weeks ago, do the Avian flu,
egg prices went through the roof. You watched the liberals
and the mainstream media have a collective egg freak out.
Now all of a sudden, egg prices are down almost
seventy Take a look at gasoline prices and you've watched
those that come down as well. I want to go back.
(03:12):
The fit, without a doubt, is tied into politics. You
just you can take a look at the backgrounds of
these people, how they normally vote, what party they're from.
They got four or five hundred economists that quite frankly,
they know they can't figure much of anything out. You know,
it's just, you know, inflation is transitory. They miss everything,
They miss everything politics. Let's go to the lead up
(03:35):
to twenty twenty four election. The Federal Reserve lowered rates.
They lowered rates by one hundred basis points. One hundred
basis points. Okay, why, I don't know. I don't know. Again,
even the mainstream media was kind of scratching their heads, saying,
(03:57):
by every metric out there by, you know, all of
the various different rules or benchmarks you normally use, the
Fed has no business lowering rates. This is going back
to the fall of this past year, and they're not wrong.
They're not wrong. So you had the FED lower interest
rates by one hundred basis points, you had the whoever
(04:20):
was running the Biden administration basically just dump cash into
the country in a myriad of different ways. And you're
not telling me that was im political, that wasn't there
to help Goosie economy, to help get Kamala Harris elected. No,
I'm sorry, you can't tell me otherwise, not not to
mention the fact your lowered rates by one hundred basis
(04:44):
points and the ten year treasury tenure treasury went one
hundred basis points in the opposite direction, which has never ever,
ever happened. Again, what is the lesson here? Well, you
know the FED has power, there's no doubt about out it,
but its power is limited. The reason why we've seen
(05:04):
rates come down, and take a look at the tenure
and how it's come down. Quite frankly, it has to
do with the fact that there's the idea, even though
again I'm I'm I'm skeptical, I'm hopeful but skeptical at
the same time, that we're going to start cutting spending,
we're going to start being more fiscally prudent. That without
(05:28):
a doubt Elon musk Is is right, is right for
you know, every every every trillion dollars you save. I mean,
I'm sorry, that's that's a that's one hundred basis points
to the downside as far as what we are spending
on our borrowing costs, and again that filters down to
(05:49):
what we spend on cars, homes, you know, whatever it
may be. That there's a bonus bonus for being fished prudent,
and that means your your risk comes down, that means
your interest rates come down. And that right now, that's
the direction we're heading in without the fad doing a
(06:11):
darn thing. I do. I get credit where credits do.
I've been very critical of Jay Powell. He didn't take
the bait. He didn't he didn't take the bait yesterday,
and it was actually quite forceful and pushing back in
regards to all of the reporters that were trying to
bait him into trying to uh cause a toss up
(06:32):
with with Donald Trump, because that's what they want it
they want conflict, they want and that's what they had.
That was their agenda going in there. Let's let's try
to create some sort of headline sad but true watchdog
on Wall street dot com
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