Kevin Warsh Just Defied Trump And Raised Interest Rates

"The Federal Reserve Bank can either strengthen the dollar or stimulate the economy. They cannot do both at the same time."

This episode breaks down the Federal Reserve's unanimous vote to raise interest rates for the first time since 2023, and why new Fed chairman Kevin Warsh raised rates even though President Trump appointed him expecting cuts. He explains why this decision has a direct impact on mortgage rates, the national debt, the stock market, and retirement accounts.

Jaspreet Singh walks through why the Fed chose to fight inflation instead of stimulating the economy, how that echoes the flip flopping rate decisions of the 1970s, and how higher rates create both pain for over-leveraged borrowers and opportunity for investors sitting on cash.

In this episode, you'll learn:

Why Kevin Warsh voted to raise interest rates despite being appointed by President Trump to cut them How higher interest rates make the $40 trillion national debt more expensive to service Why the 2022 Silicon Valley Bank collapse is a preview of what higher rates can do to banks holding Treasuries How the 1970s Fed's cycle of cutting and raising rates let inflation spiral into double digits Why higher interest rates put downward pressure on asset prices without guaranteeing a crash How rising rates benefit savers and cash holders while hurting people who are overleveraged Why the Federal Reserve Bank is losing money for the first time in over a century How the war in the Middle East, oil prices, and a helium driven memory chip shortage are adding to inflation

Keywords: Federal Reserve, interest rates, Kevin Warsh, national debt, inflation, stagflation, Treasury yields, mortgage rates, Silicon Valley Bank, investing

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