It's a mistake to Intimidate the FED -

Thanks to the Presstitutes ongoing distractions de jour, and with madness running amuck, many have missed how the Department of Justice has opened a CRIMINAL investigation against Chairman Powell of the Federal Reserve.

In Plain English…Trump is using Criminal Law to intimidate the Fed.

Please note: At FinancialsMatter we are NOT fans of the FED.

But…and this is a very, VERY Big Butt…using the DOJ to try and intimidate the FED to lower interest rates is a new political low.

(head scratching moment)

Sorry/not sorry to all Trump worshippers, but this is a huge mistake.

And we agree with Chairman Powell’s response:

“Those are pretexts,” Powell said. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”

Ironically (or NOT) history shows how 75 years ago, President Truman sought to intimidate the Fed to cap interest rates because he wanted to wage war in Korea.

It did not work.

So, are we witnessing another “history repeats” event?

And if Trump thinks he can replace Powell with a puppet/monkey who does whatever he says, we are in for a real crisis going forward.

Once again, thanks to Trump’s pressure on lowering interest rates, liquidity is being conjured out of thin air.

Why?

Because the most indebted federal government in U.S. history needs someone to quietly buy its bills for it.

Seriously, lowering interest rates is NOT about “stimulating growth,” “supporting labor markets,” or any of the other BS/PR lines Powell is forced to recite at press conferences.

And we use the term “forced to recite” because ever since FDR hijacked the system (the FED) and consolidated power in the District of Corruption, the Fed became an accessory to fiscal irresponsibility.

The system broke when the government swapped corporate paper for sovereign debt.

And it was all by design (Thanks, Roosevelt).

Because once the Fed became the buyer of last resort for federal spending, inflation became a political problem and not a monetary one.

Intimidating the FED

Using the DOJ to intimidate the fed is a move that screams QE Déjà vu…hidden under the guise of “fresh balance sheet expansion through Treasury bill purchases.”

And in search of Powell’s replacement in May 2026, Trump is supposedly interviewing Blackrock’s Rick Reider for the Fed Chair position.

Question: How does placing one of Blackrock’s high-level executives constitute “Draining the Swamp?”

C’mon, Donnie! You can to better than that…or is this all pre-planned?

As 2026, “The Year of Living Dangerously” morphs into geo-political chaos, you can expect volatility in the markets to scream into the stratosphere.

Don’t be its victim.

Instead, learn how to prosper AND thrive in it every month in our newsletter Simplifying Wall Street…In Plain English (HERE).

Share this with a friend…even if they hate the FED. They’ll thank YOU later.