Furious Fed Chair Schools Trump with Devastating Message

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1:59Ben Meiselas:Wayfair, every style, every home. Donald Trump just got schooled by the chairman of the Federal Reserve, Jerome Powell. And while Jerome Powell cut the benchmark interest rate a quarter of a percentage point earlier today, Jerome Powell said that based on how Donald Trump is harming our economy, it is far from a foregone conclusion that there will be further rate cuts. I want you to watch what Jerome Powell just said. Hide that ketchup bottle from Donald Trump. Play this clip. Look in the balance of risks. We continue to face two-sided risks. In the committee's discussions at this meeting, there were strongly differing views about how to proceed in December.

2:44Ben Meiselas:A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it. Now, the chairman of the Federal Reserve, Jerome Powell, who has access to the actual financial data out there, he explains how in the near term, the risks to inflation are up and the risks to employment are down, meaning employment not going in the right direction, inflation not going in the right direction. There's a name for this, especially with a slowing GDP. It's called stagflation. Here, play this clip. In the near term, risks to inflation are tilted to the upside and risks to employment to the downside.

3:26Ben Meiselas:A challenging situation. There is no risk-free path for policy as we navigate this tension between our employment and inflation goals. Our framework calls for us to take a balanced approach in promoting both sides of our dual mandate. Next up, Jerome Powell, chairman of the Federal Reserve, talks about how Trump's tariffs are pushing up prices. Play this clip.

4:05Ben Meiselas:He also talks about how job gains have slowed significantly as a result of Trump attacking labor forces and labor markets. Here, play this clip. Job gains have slowed significantly since earlier in the year. A good part of the slowing likely reflects a decline in the growth of the labor force due to lower immigration and labor force participation, though labor demand has clearly softened as well. Although official employment data for September are delayed, available evidence suggests that both layoffs and hiring remain low and that both households' perceptions of job availability and firms' perceptions of hiring difficulty continue to decline.

4:56Ben Meiselas:In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen in recent months. Jerome Powell talks about what we're seeing here as well. He describes it as two things affecting the job market, dramatic reduction in new workers. Here, play this clip. What is your explanation for why the job market is weakening right now? And what will this rate cut do to improve the job market? So I think there are two things affecting the job market. And one of them is just a dramatic reduction in the supply of new workers. And that's two things. that's declining labor force participation, which is a cyclical thing.

5:44Ben Meiselas:And then there's declining immigration, which is just a big policy change that actually began in the last administration and it has been accelerated now. So a big part of the whole story is that supply side story. Okay. In addition, labor demand has declined. And so the unemployment rate has gone down, meaning that demand for workers is going down a little more than supply. So that's what what's going on and but it is mostly a supply function as a you know it's mostly a function of of the change in supply i think and many people think so the question then is what does what does the um you know our tool do which supports demand and you know so and i would just say when you're when you're in a situation where job job creation if you adjust for likely over counting in the way that bls does its work is pretty close to zero so maximum employment doesn't on a sustainable basis doesn't if it's if you're making creating zero jobs if it's in equilibrium if it's if it's in balance it's a pretty as i as i said before a pretty curious balance so you know i thought and many of my colleagues thought in fact you've seen the last two meetings that it was appropriate for us to react by supporting demand with our rates.

7:06Ben Meiselas:And we've done that. We've reduced so that rates are looser. I wouldn't say that they're accommodative right now, but they're meaningfully less tight than they were. And that should help so that at least the labor market doesn't get worse. So it's a complicated situation. And some people argue that this is supply and we really can't affect it much with our tools. But others argue, as I do, that there is an effect from demand and that we should use our tools to support the labor market when we see this happening. Jerome Powell also talks about, essentially describes it as, the rich are getting richer and everybody else is having their lives destroyed by Donald Trump.

7:46Ben Meiselas:Here's how he describes it when he says, if you listen to the reports of big public consumer companies, They say on the high end, there's lots of spending, but everywhere else where most consumers reside, that's where there's real struggle. Here, play this clip. thing, I would say the same thing or similar thing. We are, if you listen to the earnings calls or the reports of, you know, big public consumer facing companies, many, many of them are saying that there's a bifurcated economy there and that consumers at the lower end are struggling and buying less and shifting to lower cost products, but that at the top people are spending at the higher income and wealth.

8:31Ben Meiselas:And there's so much, much anecdotal data on that. And so we think there's something there. So ever have one of those days where you're juggling a thousand things. And by the time the sun goes down, the last thing you want is a hangover the next morning. Same here. That's why I've started reaching for Willie's THC infused social tonic, because honestly, sometimes you just need to unwind without the regrets. For me, Willie's is the perfect weekday alcohol alternative. Whether I'm relaxing after a long day or trying to get into a creative zone, this is the one that actually works. Unlike some of those non-alcoholic drinks that promise a buzz but don't deliver, Willie's gives you an uplifting euphoric feeling and you feel it in about 15 minutes.

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9:55Ben Meiselas:Willys ships directly to your doorstep in over 40 states. Order now at drinkwillies.com and use code MIDAS, M-E-I-D-A-S, for 20 % off your first order and free shipping on orders over$95 and enjoy life in the high country. That's drinkwillies.com, promo code MIDAS, M-E-I-D-A-S. And Powell talks about, you know, how there's restrictive policies in place. Play this clip. Aid is a big part of that. But also just, you know, we think policy is still modestly restrictive in my telling. So that's the kind of thing that should lead to a gradually cooling economy. That's one of the reasons you see a gradually cooling labor market is because, you know, the Fed policy is modestly restrictive.

10:43Ben Meiselas:So that should also help get that. I want to say, though, we're absolutely committed to returning inflation to 2%. If you look at longer term surveys or market pricing, you will see that that's a credible commitment. And there should be no question that that's that that's where we're going. Now, contrast this to what Donald Trump was saying just hours before during his horrific trip to South Korea, where he says that his tariffs stopped inflation. The exact opposite of what the central banker of America is saying, what Jerome Powell is saying here, play this clip. Those wars ended on top of it.

11:22All tariffs now projected to reduce our deficit by four trillion dollars over the next 10 years. And I think actually much more than that. That's national security because you can't have deficits and you can't have debt all over the place. And stops inflation and strengthening the dollar and ultimately balancing our federal budget, which I think we're going to do very quickly, only because of our policy of fair tariffs.

11:47Ben Meiselas:Then Donald Trump says that we need to have the lowest interest rates anywhere. Just keep on lowering them. The issue is if you precipitously do that, you're going to cause inflation to keep on surging. And that's what we are seeing here. Play this clip. Well, appoint somebody that we all like because we should have the lowest interest rates of any country because without us, there are no other countries, really. I mean, the whole thing falls apart. You know, America always had the lowest interest rates. And now we don't do that. We, you know, we're like number 28. It's ridiculous. And we're a much different country than we were two years ago or a year ago even.

12:27Ben Meiselas:Then Donald Trump claims that by firing bureaucrats, we're creating real jobs. Actually, the manufacturing boom under former President Biden is no longer. Manufacturing and construction jobs are basically in a recession right now. They're going down, down, down. Here, play this clip. I've shrunk the size of government for the first time in many years since January. 100 ,000 bureaucrats have left the federal payroll. You've probably seen that. So we're creating real jobs. We're getting rid of wasteful jobs. Government spending is down 2.5 % this quarter compared to one year ago. It was going through the roof in the previous administration.

13:08Ben Meiselas:Then you had Donald Trump in South Korea saying this is basically what his game plan is. Just make announcements of good news, no matter if it's real or not. And then the stock market goes up. Here, play this clip. When we announce good news, the stock markets are going to go up. And that's the way it should be. And we're going to really ride that very hard. And when we announce good news, we're not going to have a Fed that's going to raise interest rates because they're worried about inflation in three years from now or something. When we announce good news, we want the stock market to go up, not to go down.

13:42And the scourge of inflation we inherited, you know, we inherited the worst inflation ever that we've ever had. I inherited from incompetent people. And now we're down to a very low rate of inflation, 2.7 percent. And it's going to be a little bit lower than that. It's almost a perfect number.

14:00Ben Meiselas:And then he goes and does that. And he lies and says that America's brought in$22 trillion of investment, 22 trillion. Last week, it was 17. Then it was 18. Then it was 20. Now it's 22 trillion. Soon, it's just going to be the size of the entire United States GDP. And he's going to say, without me, you wouldn't have a GDP. You know, the word GDP, it's like groceries. I came up with the word GDP. Here, play this clip. Over$18 trillion of new investments. As an example, the previous administration, In four years, they did less than a trillion, I think much less, actually, and hurt our country very badly.

14:37Who would have known? But we're going to be 18. So I figure that we'll probably be at 20 or 21, maybe even$22 trillion of investments coming into our country by the end of the first year of my second term.

14:51Ben Meiselas:Yep. And as I mentioned, factory construction boom under Biden. Bye bye. That's gone. Also, Donald Trump announced when he was in, it's weird to announce it when in South Korea, he was leaving Japan. But he said that Mr. Toyota told him, Donald, we're going to give you$10 billion in the US. And Mr. Toyota then said, no, we're not doing that. We never promised to give$10 billion. Trump is the Pied Piper of lying. He just goes around and lies over and over again. Here's what Donald Trump said. Here, play this, Clint. Last night I met with Mr. Toyota and we had an amazing meeting. I said, what's your name?

15:36Toyota. I said, you're rich. And he's going to invest, think of this,$10 billion in the United States to build a manufacturing. They'll build their cars with American workers, large. They have the right to send some experts.

15:51Ben Meiselas:but they're going to be building cars in that auto state so well there you have it folks let me know what you think hit subscribe let's get to six million subscribers thanks for watching want to stay plugged in become a subscriber to our sub stack at midasplus.com you'll get daily recaps from ron philipkowski add free episodes of our podcast and more exclusive content only available at midasplus.com