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Kudlow: A 'Trumpian' Fed is on the way
Youtubeยท 2025-09-17 20:31
Group 1 - The Federal Reserve is signaling a dovish stance with two more quarter-point interest rate cuts expected, indicating a divergence from Trump's pro-growth economic policies [1][2][3] - The second quarter GDP growth was reported at 3.3%, with the Atlanta Fed projecting the same growth rate for the third quarter, while the Fed's own projections are significantly lower at 1.6% for this year and 1.8% and 1.9% for the next two years [2][3] - There is a notable gap between Trump's expected economic growth of 3-4% and the Fed's forecast of less than 2%, suggesting a fundamental disagreement between the central bank and the administration [3][5] Group 2 - The Federal Reserve has reportedly lost nearly $200 billion due to a mismatch of assets and liabilities, with some estimates suggesting losses could reach $250 billion [6][7] - The Fed's current management is criticized for poor financial performance, as they are paying banks higher interest rates than what their portfolio generates [6][7] - There is an expectation that Trump will appoint new members to the Fed who align more closely with his economic policies, which could lead to a more favorable environment for growth [7]