Why Jay Powell’s Fed Will Not Cut Interest Rates

In this episode, Mark Thornton breaks down the political pressure from Trump, market demands for cheap money, and the Federal Reserve’s real fears: a collapsing dollar, rising inflation, and soaring long-term rates. Mark traces the history of interest rate manipulation, the precarious state of US debt, and why Chairman Powell may be clinging to high rates—not for the public good, but to save face before his 2026 exit. With the dollar weakening and deficits exploding, Mark explains why the next crisis could be just one rate cut away.

Additional Resources

“Trump Is Wrong about Interest Rates“ by Ryan McMaken (Radio Rothbard Podcast): https://mises.org/MI_129_A

“Will Fed Cut Rates By 3%? Is Massive Inflation Returning? Economist Steve Hanke Answers”: https://mises.org/MI_129_B

“Federal Funds Effective Rate”: https://mises.org/MI_129_C

“Nominal Broad U.S. Dollar Index”: https://mises.org/MI_129_D

“Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity, Quoted on an Investment Basis”: https://mises.org/MI_129_E

“Minutes of the Federal Open Market Committee, June 17–18, 2025” (PDF): https://mises.org/MI_129_F

“US FOMC Meeting Minutes (June 17-18, 2025)” by Ksenia Bushmeneva: https://mises.org/MI_129_G

Register for the 2025 Mises Institute Supporters Summit in Delray Beach, Florida, October 16–18: https://mises.org/ss25

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