Jerome Powell, as head of the U.S. Federal Reserve, is under intense pressure from Donald. Every day, the latter gets angry on the phone. But he has also too much respect for money (the only respect he has, actually) and the stock market to fire Powell like a scumbag.
Jerome Powell only has one dial to turn : the credit dial. Up (more expensive credit) or down (cheaper credit).
He unfortunatly has two problems : unemployment is the first one and inflation the second one. When unemployment rises, the economy need cheaper credit, which encourages businesses to invest and therefore employ more workers. So one pushs the dial down. When inflation is too high, we need to make access to credit more difficult and cool down economy. So, one pushs the dial up.
But when unemployment increases because production slows due to bottlenecks in supply chains AND, at the same time, inflation is soaring because tariffs have been savagely increased, the question is : which way will he turn the dial ?
He doesn’t know, I don’t know, and no one does (Donald is the last to know).
Depending on what he does, he will either let inflation run wild, which will impoverish American workers, OR he will penalize industrial activity, which will (barely) maintain the purchasing power of American workers, but industrial activity will slow even further, and the big shots will go crying to the Oval Office.
Which solution do you think will be adopted ?