Jerome Powell has cost America billions of dollars.

0:00 Speaker 1 And here we are back on Kats and Cosby, and joining us now is a man who needs no introduction. Trump advisor Peter Navarro. Peter, we love having you back. And you know, let’s get right to Jerome Powell, the Federal Reserve Chair. President Trump’s favorite nickname for him is too Late Powell. What’s going on with him? And what

0:22 should happen with Powell?

0:25 Speaker 2 Well, I had an article in this publication called The Hill this week where I nominated Jerome Powell for the worst FED chair in history. And basically the argument is he’s made three major blunders in six years. Is FED share.

0:44 They cost this country billions upon billions upon billions of dollars. It’s important to people listening here because the Fed, with its interest rate policy, basically establishes how much you’re gonna pay on your mortgage, how much you’re gonna pay on your credit card, and more broadly, it impacts things like our national Dad. So here’s the deal. It’s like in

1:09 the first term when President Trump was in, Powell get gets up to the chair and the first thing he starts doing is raising rates because he doesn’t understand how powerful Trump nomics is and be able to generate strong growth without generating places. So he cost us in this case, he was too early Palal. He costs this country a

1:34 full point a growth per year, which is just a lot of jobs, close to a million jobs. It’s billions of dollars in tax revenues and so of things. And then second, when he’s in with Biden in order to get reappointed, he cozies up to Biden, pure partisan political crap, and he doesn’t raise interest rates when Biden and then

2:01 the Democrat Congress are spending money like drunken Salers, driving the inflation rate and not taking care of supply chains. And he’s too late. Powell a layer, and we wind up with the worst inflation since the nineteen seventies because of Jay Powell. So those are two pretty big blunders.

2:20 Now here’s the punchline the job. We’re in a situation where interest rates should be at least by now fifty bases points are more lower than they are because what we’re seeing in the data is inflation falling significantly, and Powell just doesn’t get it. But I run through the cost of that in the Hill article, and think of

2:46 it this way. Half a point of interest rates too high, is about a quarter to half a point of gross domestic product you lose. That’s about seven hundred and fifty thousand jobs we’re not going to be creating because of j. Powell.

3:03 It’s a couple of hundred billion dollars in lost output and billions more and lost tax revenues from the additional output. And here’s something for the little inside baseball. But think about this. About twenty to thirty percent of our national debt is financed by short term rates. So when you add like an extra fifty basis points to the cost

3:27 of that, that’s a couple of billion, one hundred billion dollars that you add to the debt over ten year period. And then you got the mortgage problem. It’s going to cost people over one thousand dollars more year because of their mortgages. And I don’t notice, we have like a trillion dollars in revolving credit card debt. And when you

3:48 increase interest rates by fifty basis points unnecessarily, that’s about five billion dollars in interest cars And I know, John, you yourself talked a lot of this. You can get testimony the fact that it is costing busy people like you a ton of money.

4:06 Speaker 3 Well, I’ve talked about this for at least six seven months because it was costing the real estate industry a lot of money. There was, And I think the problem is I don’t think Powell is doing it because he’s stupid.

4:24 I think the hate is there, and he’s doing it because of hate. And he rather see the economy go down, down, down, down, and he rather see regional banks have a problem so that that way his friends will get re elected in twenty twenty six.

4:44 Speaker 2 I think that’s exactly right. I mean, I’m going back to the first term Trump forty five. I complain bitterly about Powell raising race too soon. Documented this he’s a pure partisan. The other thing he is, which is unfortunate, he’s a lawyer, and and that’s an anomaly on the Fed, John and Rita. We’ve only had two lawyers as opposed

5:13 to well trained economists as FED chair in the last I don’t know, four or five decades. Powell, the worst chair, is one of them. But the other guy, I don’t if you remember him, Ge William Miller. He’s like a blip in history because he only laughed at about five hundred days. But he was the guy in the seventies

5:36 who basically sat on his hands and didn’t do anything and let the stagflation of Jimmy Carty years ago, and so Carter fired him and put in place Volpaul Volker, which I mean Volker I would I would say is probably the best FED chair in history, along with William McChesney, Martin and paula the worst. Here’s why it matters, and

6:03 listeners should get involved in this. It’s like FED meets on July twenty nine to thirty. It’s a couple of weeks away, and they’re going to once again decide whether or not to lower race. And I’m appealing to the Board of Governors. If Powell doesn’t want to lead the way, then he needs to follow them and get the rate cut.

6:22 So let’s get on with it.

6:24 Speaker 3 Well, one thing I was tought that the chairman of the FED makes the decision. Everybody else that make them feel good that they have a right to say something.

6:35 Speaker 2 Yeah, it’s supposed to be more of a democracy, to be honest, And you look at the FED notes after they make their decision. I mean, if everybody on the FED board except Powell wants a lower race and rates are going to get lower. So but you know the problem is done is that we got people on that

6:54 board who are every biggest partisan is j Powell and you got appointed by Biden or you know, it’s a problem.

7:04 Speaker 1 That’s a big people wouldn’t.

7:06 Speaker 2 Be screwing around with our economy like they are. I mean, I don’t do numbers. I mean, it’s it’s just I mean, it’s it’s it’s criminal. I mean the people who go in, you know and rob banks and walk out of there, I don’t know, one hundred thousand dollars, go to jail for twenty years. The Fed steals billions from the American people,

7:27 and you know they walk around in Georgetown and they drink wine and have a good time. Yeah.

7:33 Speaker 1 No, that’s a great point, Peter, Thank you very much. Boy oh boy, this has been eye opening. And Peter and Avar, we love you, love talking to you. Thanks so much for joining us.

7:42 Speaker 2 You take care by bye doak you Peter