00:03This was a historic day for American for Federal Reserve policy history.
00:11The reason is simply that Federal Reserve Chairman Jerome Powell finally admitted what this administration has been saying all along.
00:21That tariffs do not cause inflation.
00:25And in the event that they might cause inflation, it's a one-step, one-time process that doesn't create any kind of inflationary spiral that requires the Federal Reserve to maintain high interest rates.
00:43So let me say that again so everybody understands this.
00:47Powell has been using so-called tariff uncertainty as a reason for keeping interest rates well above what they should be.
00:59Our judgment is well over 100 basis points higher.
01:02If you look at comparative rates around the world, we're at over 4 percentage points in terms of short-run interest rates.
01:14And you have Europe at less than half that.
01:18China, three times lower than that.
01:20And Japan, it's at 0.5 basis points.
01:24And what that kind of disparity does for the United States is pushes the dollar up, makes it harder for exporters, pushes our mortgage rates up, kills the housing industry, credit card debt, makes it more expensive for us to pay for our national debt because 20 to 30 percent of the short-term debt is funded with short-term debt.
01:52So, let me say this once more.
01:56It's a historic day for America, historic day for Trump tariff policy because the Fed Chair Jay Powell has finally admitted that tariffs don't cause inflation.
02:08And even if they do, it's a one-time deal that does not lead to inflationary spiral.
02:13Therefore, there is no need to maintain high interest rates because of the so-called tariff uncertainty.
02:20The stock market and bond market recognize that today.
02:25We had bond yields fall, particularly on the 10-year, dramatically.
02:29That's good for America.
02:32We had the stock market hit record highs today, over 45,000 on the Dow.
02:40So, good for Jay Powell.
02:43I don't know what he was drinking.
02:44Maybe some tariff French wine there in Jackson Hole.
02:47But finally, he's seeing it our way.
02:49The only question now is whether the Federal Reserve is going to act on that, cut rates.
02:55We don't need a little 25 basis point cut.
02:58We need 50 to 100 or more right now to make America great again.
03:04Okay.
03:04I take a couple of questions.
03:06Do you think Trump should fire Lisa Cook?
03:07You know, here's what's interesting about that.
03:12When I was on the outside before the president got elected, I was very, very critical of Lisa Cook.
03:22You can find that in a tweet and maybe an article or public comments.
03:28And my beef with Lisa Cook at the time was that she was simply unqualified for the job.
03:35And she is.
03:36She's done a terrible job there.
03:39If it turns out that she lied about her mortgage application, that's grounds certainly for firing.
03:46And so, as the boss says, let's see what happens.
03:48What else you got?
03:49And if Powell, when it comes to Canada today dropping some of this retirement.
03:52I don't want to do that.
03:52I just want to deal with the Fed.
03:54This is a big story.
03:55This is the only thing I want to talk about.
03:56Any other questions about the Federal Reserve and what happened today?
04:00I have a question about Powell.
04:01Sure.
04:01If he's not signaling that he might lower interest rates, does that mean the president's going to take the pressure off of asking him to resign, attacking him on social media?
04:12You'd have to ask the president about that.
04:14I have been very vocal and I've written extensively about Jay Powell even before I joined the administration, before Donald Trump was the 47th president.
04:26The problem with Jay Powell is he consistently makes blunders.
04:30He's made three major policy blunders in the six years he's been chairman.
04:36When we were here in 2018, he raised rates much too rapidly because he didn't understand the beauty of Trumpnomics, the ability of us to grow faster because of the tax cuts, the deregulation, the fair trade, the strategic energy dominance.
04:54And he choked off a half to one percent of GDP growth rate, which is close to a million jobs and a ton of GDP money we lost.
05:05And don't ask me about that.
05:07The Federal Reserve itself, one of the regional banks, basically verified that.
05:12And then, of course, when he was chairman during Joe Biden, he was too late Powell there.
05:20He didn't raise rates when we were having this tremendous amount of demand pull inflation because of the mismanagement and reckless spending of Joe Biden.
05:29Now, he's got rates well above.
05:32And for those of you who just joined here, remember, we're at over four percent short-term interest rates.
05:37Europe's at two.
05:39China's at 1.5.
05:41Japan's at 0.5.
05:43That sets up all sorts of arbitrage opportunities.
05:46It artificially inflates the dollar, makes it hard for our exports.
05:51And it's just a bad thing for America.
05:53All right.
05:53Any other things?
05:54Just on the Jay Powell thing, the Fed.
05:57South Korea, you know, they...
05:58Just the Fed.
05:59That's all I'm here for.
06:00This is a...
06:00I wanted to...
06:02This is a historic day on the Fed.
06:03So have you got anything else on the Fed?
06:05On the Fed.
06:05On the Fed.
06:06Yes, ma'am.
06:06We heard Secretary Besson talking before that he wants a more comprehensive audit and review of the Fed.
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