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Pal has been intensely political. I
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think Trump is right to be frustrated.
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Let's just go back through the history.
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In the summer of 2021, we got that 5%
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shock inflation print. And it was pal
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who played along with Biden and Yellen
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that this was transitory. And that
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transitory narrative they used to
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basically avoid any change of policy for
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6 months. Now, what was the importance
00:00:21
of that timing? Well, Pal was
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renominated for a second term by Biden
00:00:25
on November 22nd, 2021. So in other
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words, he went along with this whole
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transitory narrative to get renominated
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and then a week later on November 30th,
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he said it was time to retire the word
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transitory.
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Do you think that was incompetence or do
00:00:37
you think that was political sex?
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It was obviously political because think
00:00:41
about it. If Pal had stood up and said,
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"No, I think Biden and Yellen are wrong
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and this isn't transitory." It would
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have been contradicting the Biden
00:00:49
administration and it probably would
00:00:50
have cost him getting renominated for a
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second term.
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100%
00:00:54
and it caused an asset bubble in 2021.
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It caused the 9% inflation that we had
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the following year and it caused the
00:01:01
crash that we saw in 2022 and 2023. Let
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me give you another one. Pal started the
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rate cutting cycle last fall with a 50
00:01:08
basis point cut right before the
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election shortly after Elizabeth Warren
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sent him a letter demanding a cut. She
00:01:13
says that we're writing to urge the Fed
00:01:16
to cut the Fed funds rate and it says in
00:01:18
fact it may be too late. Your delays
00:01:19
have threatened the economy and left the
00:01:21
Fed behind the curve. The bottom line
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here is Elizabeth Warren was saying that
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Pal needed to cut dramatically when
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inflation was at 2 and a half%. Now
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Elizabeth Warren is saying that Pal
00:01:31
needs to stand up to Trump and not cut
00:01:32
rates. So you can see the hypocrisy
