J-Powell just threw us ALL under the bus…
In a speech at the Economic Club of Chicago, the J-Poww made it painfully clear: he’s not here to hold anyone’s hand through the fallout of Trump’s tariff chaos. When asked if there was still a “Fed put” (a.k.a. The idea that the central bank would step in to stop the markets from being yeeted into the abyss) Powell didn’t flinch. “I’m going to say no,” he said, with all the emotion of a guy watching a house burn down and deciding it’s not his problem.
(Source: Giphy)
Translation: the Fed isn’t going to cut rates or flood the system with liquidity just because the bond market is legit imploding over tariff pissing matches. Markets are “functioning kind of as you would expect them to in a period of high uncertainty,” Powell said, which is about as reassuring as my mom telling me as a kid that I’d grow into my belly fat when I got older. Spoiler: I didn’t.
Look, you know this, I know this, even Trump himself knows it… but tariffs—which now include 25% hits on everything from steel and aluminum to Chinese imports, cars, and apparently whatever else got the guillotine—have thrown the markets into the abyss. Yields are spiking. Equities are spiraling. And investors are begging for a rate cut like Wall Street begs for cocaine.
(Source: Yahoo Finance)
But Powell just doesn’t walk that kind of walk. He says the Fed will “wait for greater clarity” before making any moves. That means no knee-jerk responses, no panic cuts, and definitely no rescuing markets from a self-inflicted wound. He even warned that Trump’s tariffs are likely to push inflation higher and growth lower, exactly the kind of economic cocktail the Fed’s supposed to avoid. So now Powell’s walking a tightrope between two mandates: stable prices and full employment (meanwhile Trump is holding the rope from both ends).
And if you think the result of this was a polite policy disagreement, then you don’t know our homeboy Trump. As you can imagine, he lost his sh*t. He went full scorched-earth on Powell, raging on Truth Social that the Fed Chair’s “termination cannot come fast enough” and calling him “always TOO LATE AND WRONG.” He even floated the idea of firing Powell before his term ends in 2026, which, legally speaking, he can’t really do. But honestly, when has legality ever been a hurdle for this administration, the administration prior, and the administration’s of the past (you can thank Dick Cheney’s, Unitary Executive Theory for that one).
(Source: Giphy)
So yeah, here we are. Trump’s lobbying economic grenades from the White House, hoping the Fed will do us all a solid and cut rates. Powell’s refusal. And markets are caught in the middle, trying to price in a future where nobody’s steering the car and everyone’s arguing about who should be allowed to touch the wheel.
For now, all we can do is watch, pray, and clutch our pears… because once the pause ends, it’s going to get a whole lot nastier. Of course, quite a bit can change between now and then, but it’s better to be safe than sorry with your portfolio. So with that, place your bets accordingly, and stay safe out there. Until next time, friends…
P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos.
Stocks.News does not hold positions in companies mentioned in the article.
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