The post If Fed Cuts Result In Inflation, Then Chair Powell Has Nothing To Fear appeared on BitcoinEthereumNews.com.

WASHINGTON, DC – SEPTEMBER 18: Federal Reserve Chairman Jerome Powell speaks during a news … More conference following the September meeting of the Federal Open Market Committee at the William McChesney Martin Jr. Federal Reserve Board Building on September 18, 2024 in Washington, DC. The Federal Reserve announced today that they will cut the central bank’s benchmark interest rate by 50 basis points to a new range of 4.75%-5%. (Photo by Anna Moneymaker/Getty Images) Getty Images Credit is produced. Repeat the previous truth over and over again, and after internalizing the simple truth that we borrow money for what it can exchanged for. That we borrow dollars to get things lays waste to the popular notion within the various economic religions that an “easy” Fed is an inflationary Fed. No, that’s not how it works. Markets are wise. The Fed can’t decree credit easy or tight, and they can’t because there’s no credit by decree in the first place. Credit is once again produced in the form of market goods and labor. The Fed produces neither, which is yet another comment that the Fed’s ability to influence economic activity is well overstated. Still, for fun let’s imagine a la Wall Street Journal Fed-watcher Nick Timiraos that the Fed is capable of easing or tightening credit conditions by fiddling with the Fed funds rate. Timiraos suggests the Fed’s powers have put Fed Chairman Jerome Powell in a “No-Win Scenario.” In his words, the Fed could “cut rates sharply as Trump wants and risk fueling inflation that damages its credibility with markets. Or it could maintain its current wait-and-see stance, and face further bullying that would weaken its standing if the economy slows sharply and the administration is validated in its view that inflation shouldn’t be a worry.” Timiraos’s description of the…

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Filed under: News - @ June 29, 2025 2:16 pm