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Speaker 1: Our money policy is a mess.

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Speaker 2: Can you tell me what our money policy is?

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Speaker 1: Uh, pull it out of your ass O. See that's

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Speaker 1: our money policy, and that's the money policy of this country,

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Speaker 1: whatever we decide from one day to the next. And

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Speaker 1: it is really hurting people, and it looks like it

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Speaker 1: is about to get a lot worse.

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Speaker 2: You can file that under the economic uncertainty category.

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Speaker 1: It's the kind look Casey show by the way, I'm Rob,

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Speaker 1: that's Casey. So what I'm talking about money policy, I'm

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Speaker 1: talking about specifically in this case, there's a bunch of

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Speaker 1: different areas we get into. But without making this some

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Speaker 1: sort of Harvard course, we're talking about the Federal Reserve

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Speaker 1: and the intensifying pressure on them to cut interest rates,

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Speaker 1: which will look it's just like anything else. It's supply

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Speaker 1: and demand. And when money is cheaper, people are going

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Speaker 1: to get more of it and they're going to spend

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Speaker 1: more of it. And we saw this little experiment during COVID, Casey,

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Speaker 1: did things get less expensive or more expensive during COVID? More? Yeah?

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Speaker 1: Did your buying power and they still are Did your

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Speaker 1: buying power increase or decrease during COVID decrease? Yes? So

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Speaker 1: even though we've seen this little magical mystery tour happen before,

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Speaker 1: we never learn anything because we just keep doing the

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Speaker 1: same stuff over and over and over again. And what

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Speaker 1: we have done in this country is basically, we have

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Speaker 1: made the Federal Reserve a boogeyman to horrible, rotten, terrible

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Speaker 1: choices by politicians. And what do we see in the

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Speaker 1: post post nine to eleven money printing, post recession, the

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Speaker 1: Great Recession, money printing, bailout of the auto companies, money printing,

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Speaker 1: COVID money printing. Right, we just keep devaluing the dollar

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Speaker 1: because the more of something there is, the less it's

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Speaker 1: actually worth. And now because Trump has made look, I mean,

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Speaker 1: it's irrefutable that the tariffs are are one making things

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Speaker 1: harder to get, but things you can get are becoming

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Speaker 1: more expensive. We laid this out yesterday with the home prices.

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Speaker 1: What's going on with home prices. I'm building new homes.

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Speaker 1: It's all over the place, and it's going to get

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Speaker 1: worse because there's a delay in terms of when a

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Speaker 1: policy takes effect and then when it starts hitting the

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Speaker 1: American people. So what Trump is trying to do is,

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Speaker 1: instead of leveling with the American people and go, look,

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Speaker 1: I so believe in made in America, or the idea

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Speaker 1: of bringing jobs back here or whatever. I so believe

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Speaker 1: in this that we're going to have to feel a

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Speaker 1: little pain for a while, but hey, two years from now,

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Speaker 1: we're going to be in a much better position, and

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Speaker 1: let's all get through this together. He's doing the same

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Speaker 1: thing that Trump did during COVID, Trump doing the same.

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Speaker 1: Are we catching a theme here, which is we can

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Speaker 1: make you believe that I can do these things that

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Speaker 1: alter the economy without you feeling any pain. And in

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Speaker 1: COVID it was we'll print a bunch of money, and

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Speaker 1: we'll throw checks at you, and we'll throw checks at businesses,

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Speaker 1: and nobody will will act like nothing's going on here.

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Speaker 1: Of course, we all paid for it, continue to pay

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Speaker 1: for it with the inflation prices, food, housing, whatever. And

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Speaker 1: now they're about to do it again. But she wants

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Speaker 1: to inject a bunch of money. He wants the Federal

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Speaker 1: Reserve to inject a bunch of money into the economy

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Speaker 1: by saying, well, the tariffs are disrupting our economy, but

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Speaker 1: here's a bunch of money for everybody to play with,

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Speaker 1: so you won't feel any pain.

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Speaker 2: Right. So it does seem that Jerome Palt, the FED chair,

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Speaker 2: may be succumbing to some of this pressure because he

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Speaker 2: did say at a Jackson Hole symposium, Oh that sounds

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Speaker 2: very elite. Yeah, he indicated that interest rates could start

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Speaker 2: falling again, which means he's going to lower them.

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Speaker 1: Well, and we've talked about how the Federal Reserve's actual

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Speaker 1: job is they're supposed to consider two things, unemployment and inflation.

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Speaker 1: Unemployment inflation are the two things that they are supposed

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Speaker 1: to weigh. If unemployment is fine and inflation is under control,

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Speaker 1: that there should never be an interest rate cut. If

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Speaker 1: inflation is out of control and employment is fine, there

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Speaker 1: should never be an interest rate cut. And I don't

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Speaker 1: see other than if your find Trump's gonna have to

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Speaker 1: finally admit well, he won't admit it, but society ll

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Speaker 1: have to admit, Hey, these tariffs are really disrupting unemployment

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Speaker 1: or the employment rate, then that would be an admission

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Speaker 1: of massive failure by the president. Why you would ever

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Speaker 1: cut interests because what it does is it de values

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Speaker 1: your money. It takes your buying power down. Look at

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Speaker 1: your interest rates, your long term things for CDs, I

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Speaker 1: mean like the money should not be cheap. What is

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Speaker 1: an interest rate six and a half percent right now,

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Speaker 1: give or take. That's not by historical measures high, it's

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Speaker 1: not two percent. But money shouldn't be two percent. Money

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Speaker 1: should have value to it. The idea that I have

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Speaker 1: this dollar should have some weight behind it. And when

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Speaker 1: you just give it away, and by the way, it's

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Speaker 1: usually not you who gets it anyway, it's uber rich

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Speaker 1: people who take it and make more money and screw

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Speaker 1: you in the process. So you shouldn't want any of

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Speaker 1: this to be taking place.

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Speaker 2: All said that, risks to inflation are tilted to the

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Speaker 2: upside and risks to unemployment are tilted to the downside,

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Speaker 2: which makes it a very challenging situation. Now Powell can't

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Speaker 2: just set the rates. The decisions they're made by the

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Speaker 2: Fed Board. And now just yesterday, does this have anything

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Speaker 2: to do with it? Not the reason why, but will

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Speaker 2: it come into the whole conversation. Donald Trump is removing

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Speaker 2: the Federal Reserve governor Lisa Cook, and he announced that

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Speaker 2: last night on social media.

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Speaker 1: Yes now, she was appointed by Biden in twenty twenty two.

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Speaker 1: That it's a fourteen year term, and there's some legal

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Speaker 1: stuff allegedly going on with her, which is why they

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Speaker 1: removed her. Which is interesting because some of it is

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Speaker 1: somewhat similar, as I recall to some of the legal

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Speaker 1: stuff that Trump was engaged in, and he called it

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Speaker 1: every name under the sun. So it's very interesting what's

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Speaker 1: taking place right now now. She is, she refused to resign.

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Speaker 1: She's gonna fight.

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Speaker 2: This, of course.

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Speaker 1: But look, it doesn't even it doesn't even matter who's

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Speaker 1: in charge. Neither of these parties care about you. They

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Speaker 1: don't care about the dollar, they don't care about buying power,

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Speaker 1: they don't it doesn't it just our money in this

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Speaker 1: country is a matter