LOWERING FORWARD RATES TO SOLVE TRUMP'S PROBLEM WITH THE FED

There is a way for Trump to keep Powell, but still lower forward rates to help with the budget problem...

I’m pretty sure that in Trump’s mind, it’s not fair that recent past US governments could run large budget deficits without worries about the mounting interest expense. I can just imagine him cursing the Fed, shaking his fist in the air at the much higher interest rates that exist today versus the post-GFC pre-COVID period.

To a certain extent, all presi…