FOX Business host Charles Payne warned Thursday that Federal Reserve Chairman Jerome Powell could thwart President-elect Donald Trump’s economic policies regarding China.
The US Federal Reserve (Fed) announced on Wednesday that it would cut the prime interest rate by 0.25%, setting a target range of 4.25% to 4.50%. Payne said that while all the attention is focused on the stock market downturn, the real story is how the Federal Reserve’s policies interact with President Trump’s plans. (Related article: “There are no sacred cows”: Charles Payne predicts DOGE will bite into the military-industrial complex)
“The real news is how Fed policy interferes with monetary policy. [the] Plans for the next president. There are three things I’m really concerned about here. First and foremost, are these rate hikes the cure for inflation at this point? Well, historically that’s been the cure, but now money markets are releasing $350 billion. . Add in another 70 billion in dividends and the rich are going to go out and spend that money,” Payne told “Fox & Friends” co-host Steve Doocy. “Last week, Restoration Hardware’s stock rose 17% in one day. They said they’ve never had a better quarter, even though the housing market is the worst in 30 years. How do you put them together? Because the wealthy live in a different world, and as long as Mr. Powell keeps interest rates up, they will continue to spend.
clock:
“They’ll keep looking at the regular data and say inflation is still too high. Well, you’re the reason why,” Payne added.
Payne also warned that President Trump’s efforts to address trade with China could be thwarted by the Federal Reserve.
“Two things as far as Trump is concerned: The dollar has skyrocketed,” Payne told Doocy. “You can’t do that. With the current strength of the dollar, it’s very difficult to win a trade war with China because China will just sell things in America and exchange them for a cheaper currency,” Powell said. It’s a mess, and it’s a mess there too. ”
Payne also expressed concern about interest on the national debt, fueled by massive government spending.
“And the interest we’re paying,” Payne said. “Currently, our country pays 12%, 15% in interest, so it’s projected that the taxes we receive could exceed 20% during President Trump’s term. How can we save the country and how can we grow the country if 20% goes to interest payments?” (Click here to watch the Daily Caller documentary “Fraud: The Death of the American Voter”)
“Mr. Powell’s actions now, and what happened yesterday, are going to have a huge impact on President Trump’s plans and cause a lot of friction,” Payne continued.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or our partnership, please contact us at licensing@dailycallernewsfoundation.org.
