Trump Wants Powell OUT But Markets Are Screaming NO

0:28Hello everyone, we've got a lot to discuss today. you probably know that Jerome Powell, the leader of the Federal Reserve, he's been behind the curve for years. Go back to 2020. Remember when he was on TV almost every day saying that inflation was gonna be transitory? That was wrong. Then he told the market that he was gonna keep interest rates really low for a long period of time. All of a sudden, they started to actually hike interest rates more than 500 basis points, which was the fastest pace in history. And now interest rates, they're way too high. In the American economy, and people who are trying to buy homes and businesses, they want to have lower interest rates, but Jerome Powell won't do it.

1:00So now all of a sudden we're getting immense pressure coming out of the White House for Jerome Powell to resign. Donald Trump, Bill Pulte, and many others, they are destroying Jerome Powell on social media. They are tweeting at him day after day after day. They're trying to build public support to actually get him out of that seat. But here's the thing, I don't think he's gonna leave. One of the pressure points that they're pushing on right now is the Federal Reserve is doing a$2.5 billion renovation of the Federal Reserve building. Marble floors, nice wood-paneled offices, all the things that you would expect in a government building when they're spending somebody else's money.

1:33But to put this in context, the Federal Reserve is going to spend that 2.5 billion. That's more than the Dallas Cowboys spent on their state-of-the-art stadium. That's insane. But here's why I don't think that Jerome Powell is going anywhere. I don't think he's going to resign. And I don't think that Trump's going to fire him. Donald Trump in the White House, they ran a little op yesterday. They actually tested the market on whether they should fire him. All of a sudden, we saw in the news, all over the headlines, that there was a leak out of the White House that Donald Trump was preparing to fire Jerome Powell, that there was a letter that had been written that he was ready to do it.

2:03What was the market reaction? It immediately tanked. The market started to go down and that gave the negative feedback to the White House that if you fire Jerome Powell, it's going to lead to a market not being happy about it. And so what did Donald Trump do almost immediately? Within two hours, he was on TV giving an interview and he immediately reassured everyone that he's not gonna do anything. So, no, we're not planning on doing anything. We're very concerned. he's doing a little renovation for$2.5 billion of the Fed, building a renovation, and they have a close to$900 million cost overrun.

2:39And it's a shame. But the biggest cost overrun is the cost overrun for interest rates because we should be paying three points lower. He knows that Jerome Powell's term is up in seven or eight months. All he's got to do is wait it out. And so that type of leaking the information, getting the feedback, and then making a decision, that's how a lot of politicians operate. And so once you understand that dynamic, you then can start to look at the news a lot differently. And that is why I don't think Jerome Powell is going anywhere until the end of his term. Affordability for the average American family is a very real issue right now.

3:10Anyone telling you it's not, they're dumb or they're lying. You choose. Every time you step outside your door, it doesn't matter where you live, it feels like you spend 50 to 100 bucks and you aren't even sure what you got in return. The data is even more overwhelming when you start to look at critical expenses. Charlie Bellillo, he shows that healthcare insurance premiums, they have skyrocketed from$6 ,000 in the year 2000 to$26 ,000 last year. That's a 342 % increase or more than 6 % a year. But Charlie says, wait a second, inflation is only 2.5 % during that timeframe. That means that it's more than 2X growth.

3:43So obviously that's not good and it's destroying affordability. The pain doesn't stop there though. Charlie then explains that US auto insurance rates, they've increased by 94 % over the last decade. That's far above the 35 % increase in overall consumer prices. And if that wasn't bad enough, Charlie says that the median household income that you need to purchase the median home in America, about$123 ,000, that's 56 % higher than the current median household income in America of only$79 ,000. This is the most unaffordable housing market in history. See, here's the thing. If you keep printing money with a lack of discipline, everything gets more expensive because the value of the dollar is going down and all those products and services are priced in dollars.

4:27We've seen the purchasing power of the U.S. dollar decrease by approximately 30 % since 2020. This isn't your grandfather telling you how he used to buy a Coca-Cola for a nickel at the corner store, or your uncle explaining how a few dollars could feed the family for a week. They're still saying that stuff. But we are also talking about a complete destruction of the purchasing power for the average family just in the last half decade. And the economists and the academics, they don't want to acknowledge how pervasive the problem actually is. Food, that's skyrocketing. Rent, that's skyrocketing too.

4:58And housing, forget about it. No one can afford those either. We have a full-on affordability crisis on our hands and we better start using free market economics to get those prices back down. If we don't, we are going to see a rise in socialism and communism in this country. You want housing prices to fall? Let the builders build more housing. Let them build as much as they possibly can. Unleash them. You want food prices to come down? Get farmers and food producers rocking and rolling. Flood the market with supply. Prices will come down real quick. If we don't start using economics to solve these problems, the idiotic politicians will prey on the uneducated and they're gonna promise them free things in exchange for giving up their freedom.

5:38We've seen that story play out over and over and over again in history. Let's not have it happen in this incredible country that our parents, our grandparents, and our great-grandparents worked so damn hard to build. Everyone knows Jeff Bezos is the GOAT. The man's got a$500 million yacht and he's literally just printing cash on a daily basis. But Mr. Exits, one of my favorite X accounts, went deep in the archives and he found one of the early interviews Jeff Bezos gave. The reporter is pressing Bezos, asking him all about, are you an internet company or are you not? Bezos at one point even says, internet schminternet.

6:11That's the type of energy he's been bringing since day one. But listen to why Bezos was so locked in on serving his customers from the very beginning. You're not really a pure internet company anymore either, are you? I mean, you've got millions of square feet now of real estate. You've got a growing, huge and growing inventory of items that you keep in stock. We do whatever. And you've got thousands and thousands of employees now. Yeah, we have over 3 ,000 employees and over 4 million square feet of distribution center space. And those are things I'm very, very proud of. Because with that distribution center space and half a dozen distribution centers around the country, It allows us to get product close to customers so that we can ship it to customers in a very timely way, which improves customer service levels.

6:56That's what we're about. If there's one thing Amazon.com is about, it's obsessive attention to the customer experience end-to-end. And that's what those distribution centers are for. But you're not a pure Internet play. It doesn't matter to me whether we're a pure Internet play. What matters to me is do we provide the best customer service. Internet, schminternet, that doesn't matter. Well, but it does matter to your investors to know whether they're investing in a company that is... No, they should be investing in a company that obsesses over customer experience. In the long term, there is never any misalignment between customer interests and shareholder interests.

7:29Well, that's the same argument that somebody at Walmart would make as well, wouldn't it? I don't see why not. I think they should make that argument. It's a correct argument. Okay. So you'll open as many square feet of space, physical space, as you have to hire as many employees as you have to. To service customers. Absolutely. Now, that's the whole thing right there. Jeff Bezos from day one said that he wanted to have obsessive attention to the customer experience. He wanted to continue to improve customer service levels. So it doesn't matter what type of business you're in. Are you a plumber?

8:01Are you a software developer or anything in between? If you simply understand who your customer is and you continue to serve them well and do it better than anyone else, your customers will keep giving you money. and that's what ultimately allows you to build a monster company and it turned Jeff Bezos into one of the greatest entrepreneurs of all time. All right, guys, before I let you go, I got one funny video for you. You know, everyone's talking about robotics. I think humanoid robots gonna be a big, big deal, but every once in a while, you see one of these humanoid robots just doing weird things.

8:31And this video right here, this is the latest weird one. Somebody dressed them up, kind of like a pride event or something, had them just walk around the streets and as you can imagine, people had a lot of different reactions. Take a watch. Hi Gorge

8:49That is a robot oh my god what the f**k ahhhh what the f**k yeah you took the bad hair

9:09yes yes so cute bye robot it's waving at us give me a high five

9:27So regardless of what you think, if you thought that people were being weird as humans, what do you think they're going to do when they essentially have pet robots? They're going to be dressing them up, having them do all kinds of weird, insane things. And to be honest, if you're somebody who's terminally online, the content is going to be amazing coming out the next couple of years. So get used to watching the robots do weird shit because I don't think that's going to stop anytime soon. that's it for today I hope you guys are enjoying this please make sure that you're following us on X and please please please make sure that you're subscribed on YouTube we're trying our best to grow that platform as well and I'll see you guys tomorrow live from the desk of Anthony Pompliano