"You're Fired!" - Fed Edition Coming Soon to Washington
Hold onto your wallets, America! The Trump administration isn't just redecorating the White House—they're planning a complete makeover at the Federal Reserve too. Following Gary Gensler's swift boot from the SEC, Fed Chair Jerome Powell appears next on the chopping block. And they're not even waiting for his term to expire—how impatient!
Treasury Secretary Scott Bessent has already spilled the beans: they're interviewing Powell's replacement despite his term running until May 2026. Talk about an awkward office environment for the next 13 months!
Tariffs and Tantrums - Economic Storm Brewing
Why the rush to ditch Powell? It seems Team Trump is preparing for the economic whiplash their tariff bonanza is about to unleash. And nothing says "we need a scapegoat" quite like blaming the Fed Chair!
"The interest rates affect credit cards, they'll affect auto loans, the bottom 50% of Americans over the past two years have gotten crushed by these high interest rates. We're set on bringing interest rates down,"
Bessent declared, presumably while practicing his best "it wasn't our tariffs that did it" face.
The administration's proposed 125% tax on Chinese imports isn't just eye-watering—it's wallet-emptying! According to the Tax Foundation's study (published April 11, because we all love fresh bad news), these tariffs could shrink US GDP by a whopping 1.3% long-term.
2025 - Pain With a Chance of More Pain
Ready for some household budget fun? The average American family can look forward to a special tariff-induced tax increase of approximately $1,300 in 2025. Just what everyone wanted when inflation was already making grocery shopping feel like robbery!
Add in foreign retaliation targeting $330 billion of US exports, and we're looking at a GDP reduction that could hit 1.0%. It's like economic Jenga, but everyone loses!
2026 - The Great Economic Reset (Trump Style)
The plot thickens! A month ago, Bessent essentially pointed at Powell as the big bad wolf stopping Trump's interest rate cut dreams. Meanwhile, Powell's Federal Open Market Committee (FOMC) has been stubbornly refusing to cut rates until inflation actually cools—how unreasonable of them to use data!
The Fed's downward revisions to 2025 economic projections paint a picture gloomier than a Seattle winter. According to economists who apparently have crystal balls, the Trump Administration is bracing for "economic weakness" in 2025 due to tariffs but sees 2026 as the comeback year.
"This sets up perfectly for 2026 to be the year of interest rate cuts and economic stimulus, with the newly appointed Fed Chair," noted The Kobeissi Letter, in what sounds suspiciously like saying "We'll break it in 2025, then fix it right before the midterms. Genius!"
Fed Chair Powell’s term ends in 13 months, yet new Fed Chair candidates are already being discussed.
— The Kobeissi Letter (@KobeissiLetter) April 14, 2025
The Trump Administration knows economic weakness is coming from tariffs in 2025.
This sets up perfectly for 2026 to be the year of interest rate cuts and economic stimulus, with… https://t.co/CaDeXLl6xj
Powell's Legacy: It's Complicated
Jerome Powell has been riding the economic roller coaster since 2018, navigating pandemic chaos and inflation spikes like a captain in a perfect storm. His second term, confirmed in May 2022, has been all about balancing stable prices and employment—a juggling act that's impressed everyone except, well, Trump.
"The Fed would be much better off cutting rates as US tariffs start to transition (ease) their way into the economy. Do the right thing,"
Trump shared on Truth Social, essentially saying "Cut rates to offset my tariffs or you're fired!"
So there you have it, folks! The administration wants a Fed Chair who nods along with their economic playbook—and Powell's just not nodding enthusiastically enough. The search for America's Next Top Fed Chair is officially underway, and the only qualification seems to be "must love rate cuts"!
Kataryna Habeliia
