Powell is holding steady to support HONEST business and REAL economics. He’s clearly sending a message to Trump and Elon that he won’t back down to satisfy Elon’s endless universe-consuming greed. Trump is NYC. Trump is Wall Street. Trump wants ZIRP and QE to return so his allies can finish bombing the country down to bedrock.
Powell likes to talk about data and inflation and such, but those are just the expected jargon for a fed chairman. In reality interest has only a small indirect effect on inflation. A normal interest rate channels savings toward more real investment and less Dow fraud. Real investment will gradually rebuild real production, so NORMAL interest needs to hold steady for a long time. This shifting of capital will be far more effective than tariffs and subsidies.
Inflation results from monopoly control, not interest. The distinction is clear in real estate. Media and “economists” tell us that prices are high because interest is 7% instead of 3%. That small difference can’t possibly account for the DOUBLING of prices since 2015. In fact higher interest tends to push prices down slightly so the monthly payment stays about the same. The DOUBLING happened because Blackrock and other predators bought up all the leftover houses and reduced the supply. Normal economics then raised the price vastly higher for the small remaining supply.
Polistra's Mill 