TL;DR

Trump’s rumored Powell-firing plan isn’t just reckless policy; it’s playing with economic fire. History shows us how quickly such games can burn down the house.

Story

Trump’s reported musings about firing Powell echo a dangerous pattern. Like a gambler tilting the roulette wheel, he seems to view economic policy as a game he can rig. This isn’t new. Remember the 2008 crash? Or Enron’s collapse? Those were fueled by similar disregard for rules.

Here’s the gist: Trump allegedly wants to replace Powell with a yes-man who’ll slash interest rates. ‣ Interest Rates: The price of borrowing money. Lower rates make loans cheaper, boosting spending (but risking inflation).

Why is this scary? Because artificially juicing the economy is like building a house of cards. It looks impressive until the wind blows. And the wind here is inflation. ‣ Inflation: When prices for everything rise, making your money worth less.

If rates are slashed and inflation soars, we get stagflation—a toxic mix of economic stagnation and high inflation. ‣ Stagflation: A nasty economic situation where prices go up but the economy doesn’t grow. Like a treadmill going nowhere fast. Think 1970s, high unemployment, and skyrocketing prices. Fun times.

The potential impact? Your savings lose value, jobs become scarce, and economic chaos ensues.

The real kicker? This all hinges on Trump’s personal whims, not sound economic policy. It’s like letting a toddler play with matches near a gasoline tank.

Advice

Diversify investments, question authority, and remember: history repeats itself, especially when we ignore it.

Source

https://www.reddit.com/r/stocks/comments/1k1kqy4/trump_has_for_months_privately_discussed_firing/