David Sacks: Jerome Powell has been “intensely political” as Fed Chair

Pal has been intensely political. I think Trump is right to be frustrated. Let's just go back through the history. In the summer of 2021, we got that 5% shock inflation print. And it was pal who played along with Biden and Yellen that this was transitory. And that transitory narrative they used to basically avoid any change of policy for 6 months. Now, what was the importance of that timing? Well, Pal was renominated for a second term by Biden on November 22nd, 2021. So in other words, he went along with this whole transitory narrative to get renominated and then a week later on November 30th, he said it was time to retire the word transitory.

Do you think that was incompetence or do you think that was political sex? It was obviously political because think about it. If Pal had stood up and said, "No, I think Biden and Yellen are wrong and this isn't transitory." It would have been contradicting the Biden administration and it probably would have cost him getting renominated for a second term. 100% and it caused an asset bubble in 2021. It caused the 9% inflation that we had the following year and it caused the crash that we saw in 2022 and 2023. Let me give you another one. Pal started the rate cutting cycle last fall with a 50 basis point cut right before the election shortly after Elizabeth Warren

sent him a letter demanding a cut. She says that we're writing to urge the Fed to cut the Fed funds rate and it says in fact it may be too late. Your delays have threatened the economy and left the Fed behind the curve. The bottom line here is Elizabeth Warren was saying that Pal needed to cut dramatically when inflation was at 2 and a half%. Now Elizabeth Warren is saying that Pal needs to stand up to Trump and not cut rates. So you can see the hypocrisy