What is the Difference
between the FED and Bessent?

I watched Jerome Powell’s statement and Q&A session that followed.

24 hours prior to that, I listened to President Trump address real-world Japanese and American business leaders about the actual core difference in thinking between Trump, Lutnick, Bessent and the top Trump economic team and those of the FED.

When I listen to Trump, the message is that $20tn in investment commitment has been secured and is being deployed. I am hearing about tariffs revenue, about on-shoring, about deregulation, about higher GDP growth than anticipated, about being the hottest country in the world, signing trade deals with all of the major countries and I see record stock market prices and that inflation isn’t raging at all, with low oil prices.

When I listen to Powell, I hear that inflation is higher than normal, mostly due to tariffs, that the economic outlook is foggy and challenging and that the FED doesn’t know how to manage maximum employment and risk to inflation, so they want to continue playing it safe and are not even sure if a December 2025 rate cut, which was 88% priced-in is a foregone conclusion.

So, what is really going on?

The real underlying issue is that the bedrock of the FED’s academic framework is that when interest rates are LOWERED, inflation rises and when interest rate GO UP, hiring freezes and layoffs begin.

Trump is reshaping the role of the dollar to HELP the American people, not to indebt them and facilitate the funding of China’s military, therefore there is a GRAND-CANYON GAP between the Federal Reserve and the Trump administration.

Trump looks at interest rates, as a function of risk, in the most basic and straightforward form.

Therefore, the U.S. SHOULD PAY the lowest interest rates of any country.

That, at the outset, is the most important difference between the FED and Trump. The FED believes that if they cut interest rates, inflation will surge.

That’s despite cutting interest rates to ZERO for a full eight years and seeing no inflation!

It is just their thought loop, which they can’t escape. They target 2% inflation — why? Who came up with that arbitrary number?

Trump despises academic theory, which can be easily dispelled and pay no tribute to a professor that takes ownership of a topic, because of his title.

The reality is simple: every interest paid by the U.S. Treasury on their debt is taken from either tax revenue or tariffs revenue.

If other countries can issue cheaper debt than the U.S., then our debt is expensive, because as the world’s no.1 economy, no.1 military and no.1 Constitutional Republic, we are the safest country ever.

Secondly, the FED keeps worrying about jobs and hiring and immigration, and I just don’t see how their viewpoint is SO DIFFERENT than his, which again brings up my point that the FED and the Treasury MUST work together, not pretend that the FED is this independent bank, because its bullshit.

We are going to see major reforms at the FED and we’ll make it a much more constructive institution, or we’ll abolish it, by absorbing it into the Treasury. That’s just reality.

The American people voted for President Trump, not for a central bank, which Woodrow Wilson brought into our lives in 1913, unconstitutionally.

What Powell did yesterday, by sowing doubt about more rate cuts, when the markets clearly believe they are needed, is an act of war against Trump and the American people and he’ll pay for it.

Count on it.

Best Regards,

Lior Gantz
President, WealthResearchGroup.com