Independence is crucial for the Federal Reserve to set policies that work in the best interest of the economy, but that independence is currently under siege. Earlier this year, Trump attempted to fire Fed Governor Lisa Cook1, an unprecedented move in the Fed’s 111-year history. Then last week, he installed a co-architect of the “Mar-a-Lago Accord2,” Stephen Miran, on the Fed’s Board of Governors, just the day before an important meeting to determine their benchmark rate3. One way or the other, the administration refuses to be denied authority to lower interest rates and significantly weaken the dollar.
Global commerce essentially runs on the U.S. dollar, which keeps its demand high and our interest rates relatively low to our massive national debt. If confidence in the dollar’s stability were somehow shaken4, that might compromise its lofty status in global markets, opening the door for a rumored BRICS currency5 to present a worthy challenge to the dollar’s dominance.
So, who benefits from this scenario6? The underwhelming 1.5% GDP growth we’ve seen in the first half of the year can be attributed largely to a spending frenzy among the super-wealthy, and corporate investments in AI7, which in turn has driven up share prices in the tech sector. Lower interest rates mean greater investments in AI (further inflating a bubble), and a lower dollar will encourage more foreign interest in American tech8—both factors which are sure to send those stock prices higher still. Meanwhile, the top 0.1% currently owns nearly a quarter of all corporate equities and mutual fund shares—an all-time high9.
As job creation has completely hit a wall, the Fed voted in favor of a 0.25% rate cut10. Historically, rate cuts spur employment by wooing companies to invest in growth11, but with so much investment going to AI this year, does anyone really believe a modest rate cut will have a significant impact on the jobs market? Even Fed Chairman Jerome Powell seemed unconvinced at the announcement12.
A 0.25% rate cut almost certainly won’t affect the majority of Americans. Consumer debt will continue to rise, job growth will remain low, wages will stagnate, and grocery prices will climb. Meanwhile, the top 10%, who own 87% of all corporate equities13, will see their portfolios grow, as an already insane market (218% on the Buffet Indicator currently—another all-time high14) gets juiced even more.
With the White House now influencing Fed policy, deeper cuts are certainly on the horizon. Do you think they’ll benefit you? Who do you think will ultimately pay if some trillion-dollar tech giant takes a deep hit and is deemed “too big to fail” for risk of systemic fallout15?
1 Last month, Trump declared that he was firing Lisa Cook from the Board of Governors, accusing her of claiming two properties as her primary residence to secure better mortgage terms in 2021. She said that she’s not stepping down and can’t be removed unless ‘for cause.’ A federal court blocked Cook’s dismissal, and last week Trump appealed to his friends in the Supreme Court.
2 The Mar-a-Lago Accord is a ‘concept of a plan’ to devalue the dollar without losing its status as the world reserve currency. [Wikipedia]
3 The Federal Open Market Committee met September 16-17, one of their eight meetings scheduled each year to make monetary policy decisions. Two more are scheduled in 2025.
4 Perhaps by politicizing our monetary policy.
5 A proposed BRICS currency, the Unit (dope name fr16), would effectively replace the dollar in trade between BRICS countries, which would then reduce the need for member nations to keep as many dollars in reserve. It’s a messy proposal at present, but there is already a very real de-dollarization emerging in global trade, which could make the Unit inevitable. [Wikipedia]
6 You won’t be surprised: the super-wealthy.
7 The figures from Powell’s address on 9-17. [Federal Reserve.gov]
8 Executive Order: Promoting the Export of the American AI Technology Stack, July 23 2025 [White House.gov]
9 From ‘Corporate equities and mutual fund shares by wealth percentile group (2000-2025)’ [Federal Reserve.gov]
10 Miran advocated a 0.5% cut.
11 Jobs.
12 Quote: “I think you’ve got downside risks in a world where unemployment’s being held down because both demand and supply are declining. I think that’s—it’s worth paying close attention to it, and we are.” – from Powell’s address on 9-17. [Federal Reserve.gov]
13 see, 9 [Federal Reserve.gov]
14 Current Total Market Cap / Current GDP [The Buffet Indicator.com]
15 The Intel purchase was a step towards communism! Our free-market heroes have lost their way!
16 Slang: for real.