🚨 THE FED’S GUARDRAIL — WHY RATE CUTS AREN’T A PRESIDENTIAL SWITCH 🏦

Recent comments from President Trump — saying the Fed “should listen” to him on interest rates — have reignited an old debate. But a strong pushback just came from inside his own economic circle.

Kevin Hassett, a top Trump economic advisor and a potential future Fed Chair, made one thing clear:

👉 Rate cuts are NOT political decisions.

Even if he led the Fed, the President’s opinion would carry no weight unless it was backed by hard data.

That statement directly challenges public calls for aggressive rate cuts and ongoing criticism of the central bank.

Why this matters for markets

1️⃣ The Fed’s firewall

Interest rates are decided by the 12-member FOMC, not the Fed Chair alone. This structure exists to protect monetary policy from short-term political pressure.

2️⃣ The dual mandate

The Fed is legally tasked with: • Maximum employment

• Price stability (controlled inflation)

History shows that when central banks bend to political timelines, inflation and instability usually follow.

3️⃣ Data over politics

Hassett’s stance reinforces a core principle:

📊 Economic indicators decide policy — not election cycles or public demands.

The bigger picture

This clash highlights a familiar tension: • Governments want faster growth through lower rates

• Central banks focus on long-term stability

Markets don’t trade opinions — they trade policy credibility.

Watch the data. Watch liquidity. Watch the Fed — not the noise.

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