In just 6 months, the Trump administration has engaged an economic turnaround in America that most people couldn’t even have imagined a year ago. The economy is growing like gangbusters. But to truly unleash the new Golden Age that the president promised, interest rates must be cut by the Federal Reserve.
As a reminder, Jerome Powell cut interest rates twice in 2024. He did it once to help Joe Biden’s flagging poll numbers, and again to help Kamala Harris. Now that Donald Trump is in office with a goal of having the American economy benefit Americans, the Fed is stubbornly refusing to touch interest rates.
As of August 2025, inflation is half of what it was a year ago, and economic growth is twice as high. Massive new tariff revenues flowing into the country have not caused any inflation (tariffs cannot cause inflation). Yet the Fed voted Wednesday to keep interest rates steady at 4.25 to 4.5%.
This may be difficult for people to grasp, but the Federal Reserve is trying to cause a debt spiral because the institutional banks are butt-hurt about Donald Trump. Keeping interest rates high makes servicing the national debt unsustainable. They know that.
The Never Trumpers in institutional banking are preventing regional banks from generating real wealth in the accounts of Americans. That’s what this is. They’re stifling the Trump 2.0 economic renaissance by keeping interest rates higher than they need to be.
Jesse Watters has a good rundown of the insanity in this clip: