The stakes are high for Trump right now. He has to deliver on what he’s promised.
That’s why a Fox News host just warned Trump about a mole in his upcoming administration.
It would surprise many Americans just how few individuals it would take to completely throw off the agenda of an incoming Presidential administration. This is how the Washington, D.C. bureaucracy works and why so many Americans are fed up with the “Washington, D.C. Swamp.” It’s built to move so slowly that the nation is never making progress for real change.
Donald Trump has to try his best to uproot the individuals who are seeking to be a thorn in the side of the second Trump administration. If he doesn’t he could risk a situation similar to his first term in office where he is only able to see success in certain areas that he has more control over, like the federal regulation registers. On the positive side, some of these D.C. bureaucrats are showing their true colors and being called out.
One man in particular could do a lot of damage to Donald Trump, and that’s what Fox News host Charles Payne is warning Trump and his allies about. That man is Federal Reserve chair Jerome Powell, who has been in lockstep agreement with the Biden administration on how best to fix the inflation issue. Their answer? Jack up interest rates and continue to print money out of thin air. Many economists agree this is the main problem for inflation.
Charles Payne Warns Jerome Powell’s Actions Could Disrupt Trump’s Economic Agenda
Fox Business host Charles Payne expressed concerns on Thursday about the potential impact Federal Reserve Chairman Jerome Powell’s actions could have on President-elect Donald Trump’s economic agenda, particularly with regard to China and the overall economic landscape. The commentary came after the Federal Reserve’s decision to lower the prime interest rate by 0.25%, bringing the target range to 4.25% to 4.50% on Wednesday. While much of the media’s attention has been focused on a downturn in the stock market, Payne argued that the true significance of the Fed’s actions lies in how they could interact with Trump’s plans for economic growth.
Payne argued that the Federal Reserve’s rate cuts might not be the right remedy for inflation. He pointed out that, traditionally, interest rate hikes have been seen as a cure for inflation, but current economic conditions might make this approach ineffective. “The real news is here how Fed policy interferes with [the] president-elect’s plans. There’s three things here that really worry me a lot. First and foremost, are these rate hikes the cure right now for inflation? Now, historically, that was the cure, but because money markets right now, money markets are giving off $350 billion. You add another 70 billion in dividends, rich people are going out spending that money,” Payne told Fox and Friends co-host Steve Doocy.
Payne pointed out the disconnect between traditional economic assumptions and the current reality, emphasizing that the wealthiest Americans were still able to prosper despite economic challenges. He cited the example of Restoration Hardware’s impressive stock performance, which increased by 17% in a single day. Despite the housing market facing its worst performance in 30 years, the company reported its best quarter yet, driven in part by spending from affluent consumers. “Last week, Restoration Hardware stock was up 17% in one day. They said we never had a better quarter, even though the housing market is the worst in 30 years. How do you put those together? Because wealthy people are living in a different world and as long as Powell keeps rates up, they will continue to spend.”
This disconnect, according to Payne, is troubling because it means the Federal Reserve’s policy may not address the root causes of inflation, particularly as it continues to impact wealth inequality. “They keep looking at ordinary data, they’re gonna say inflation is still too high. Yeah, you are the reason,” Payne argued, suggesting that the Federal Reserve’s focus on traditional economic indicators might miss the mark in a time of significant economic disparity.
Implications for Trump’s Trade War with China
Payne also warned that Powell’s policies could have negative implications for President Trump’s strategy in dealing with China. Specifically, the host highlighted the effect of the dollar’s strength, which had surged following the Federal Reserve’s actions. A strong dollar, Payne noted, could hinder Trump’s ability to win a trade war with China. “As far as Trump is concerned, two things, the dollar surged,” Payne said. “You can’t – it’s very difficult to win a trade war with China with a dollar as high as it is right now because China will just sell stuff in America and exchange it for a lower currency. So, Powell messed up, is messing up there.”
In essence, Powell’s actions could be making it easier for China to sell goods to the United States by leveraging the stronger dollar, thus undermining Trump’s trade efforts. According to Payne, this creates a complicated dynamic that could reduce the effectiveness of tariffs and other measures aimed at rebalancing trade with China.
Another major concern raised by Payne was the growing burden of national debt, particularly in light of the federal government’s increasing spending. With the rising interest rates, Payne warned that the government’s ability to manage its debt would be severely compromised, especially as the costs of servicing this debt become more expensive. “Also, the interest we are paying,” Payne noted. “Right now our country is paying 12%, 15% on interest, so the tax money that we take in. During – right now it’s projected during Trump’s presidency that could go to over 20%. How can you save a nation, how can you grow a nation when 20% of the money you take in goes to interest payments?”
This growing portion of the federal budget being consumed by interest payments could reduce the amount of money available for other priorities, such as infrastructure development, defense, or social services. Payne expressed concern that this heavy financial burden could stunt long-term growth, making it harder for the country to address pressing challenges.
Austrian Economists on Inflation and Government Coercion
The issues raised by Payne are not unique to his analysis but address serious economic concerns that have been central to Austrian economics for many years. Austrian economists, including figures like Ludwig von Mises and Friedrich Hayek, argue that inflation is not merely a result of complex economic forces but rather a consequence of government interference and coercion in the economy. According to Austrian theory, inflation is caused when governments expand the money supply beyond what is justified by the actual demand for goods and services. This expansion is typically financed through mechanisms such as central bank actions, like those of the Federal Reserve under Jerome Powell.
Austrian economists believe that inflation is primarily driven by the government’s ability to print money, which devalues the purchasing power of the currency and creates price increases. These actions, they argue, are a form of coercion because they undermine the stability of the economy, affecting individuals’ savings and wages, particularly those who are not wealthy enough to protect themselves from inflationary pressures. By artificially manipulating interest rates and increasing the money supply, the government distorts market signals, leading to misallocations of resources and economic instability.
In this context, Payne’s criticism of Powell’s policies could be seen as echoing Austrian economics. By raising interest rates and injecting liquidity into the system, the Federal Reserve may be exacerbating the very issues it aims to address, such as inflation and income inequality. As Austrian economists have long argued, true economic stability and growth can only occur when markets are allowed to operate freely, without the distortions of government intervention.
Charles Payne’s warning about the potential consequences of the Federal Reserve’s actions on President Trump’s economic agenda highlights the complexities of managing an economy in a time of financial uncertainty. While Powell’s policies may have been designed to combat inflation, they may also be inadvertently supporting wealth inequality and hindering efforts to reduce the national debt. These concerns are not only shared by critics of the Fed but align with legitimate economic theories, such as those advanced by Austrian economists, who view inflation as a direct result of government coercion and interference in the market. As the nation moves forward, it will be important to consider the long-term effects of these policies on both the economy and the overall population.
The Conservative Column will keep you updated on any major news and reports on the economy.
