Thursday, September 17, 2026
PMT: The Fed and the Prez
Yesterday, in an effort to forestall more inflation, the Federal Reserve raised interest rates by a quarter-point. It was a move most experts expect and supported, given current economic conditions.
President Trump wasn't happy. He wants the rates to go down, not up (presumably to juice the economy before the midterms). Now he is threatening to cut off trade to countries with which we have a trade deficit.
It's an odd threat. Cutting off trade in that way will hurt businesses large and small, right before the midterms. However, there is logic of some kind deep within the head of one man-- and what he wants is lower interest rates.
Meanwhile to the north, Canada is pursuing "Associate" status with the E.U., a move that (if successful) would be the biggest move ever by the EU outside the continent of Europe. There is no secret as to why Canada is looking away from the US at the moment-- but it is likely there will be more provocations in the future.
