Larry Kudlow: A 'Trumpian' Fed is Coming to Implement Pro-Growth Policies

Federal Reserve's Dovish Stance and Opposition to Trump Policies

• 📉 The Federal Reserve is signaling two more quarter-point interest rate cuts, a dovish move that appears to oppose Donald Trump's pro-growth economic policies.
• 📊 While Trump's supply-side tax cuts and deregulation are expected to boost GDP growth and keep prices low, the Fed projects significantly lower growth rates (1.6%-1.9%) compared to Trump's expectation of 3%-4%.
• ⚠️ This discrepancy suggests the central bank is at odds with the president's economic agenda, which Kudlow deems "troublesome" and "not good."

Calls for Leadership Changes at the Fed

• 🗣️ Kudlow argues that Fed Chair Jay Powell should have resigned months ago and criticizes the Fed's opposition to Trump's policies.
• ⚖️ He asserts that Trump has the authority to fire Biden Fed appointee Lisa Cook for alleged mortgage fraud, suggesting Powell lacks the backbone to suspend her during an investigation.
• 🔑 The appointment of Trump economist Steve Moore to a vacant Fed slot for at least four months is seen as a win, as Moore dissented from the Fed's decision, advocating for a larger 50 basis point cut.

Fed's Financial Mismanagement and Economic Outlook

• 💸 The Fed has reportedly lost nearly $200 billion due to a mismatch in assets and liabilities, with money managers losing money daily.
• 📉 The Fed's bond portfolio is described as "underwater," with estimated losses of up to $250 billion, drawing parallels to the 1980s savings and loan crisis or the failure of Silicon Valley Bank.
• 🚀 Despite these issues, Kudlow encourages cheers for lower interest rates and anticipates that Trump will soon appoint his own Fed members to pursue his splendid economic growth policies.