Fed Blinks First: Rate Cuts Begin as Ex-IMF Chief Warns of Inevitable Inflation Spiral
The Federal Reserve just pulled the trigger on its first interest rate cut in nine months. And while Wall Street cheers, those of us watching the deeper cracks in the financial system recognize exactly what this means:
The Fed is capitulating. The economy is weakening. And inflation is coming — whether they admit it or not.
On Wednesday, Jerome Powell’s Federal Reserve cut the benchmark rate by 0.25%, a move aimed at papering over slowing job growth and mounting economic headwinds. But this isn’t about fine-tuning policy anymore — it’s about survival.
And according to former IMF Chief Economist Kenneth Rogoff, it’s a “dangerous path” that ends in inflation, erosion of trust, and a collapsing dollar hegemony.
"The Federal Reserve's under assault," Rogoff said in an exclusive Kitco News interview. “I promise you that will lead to higher inflation over 10 or 20 years than we would have otherwise.”
Translation: The Fed is no longer independent. It’s a political puppet — and inflation is no longer a threat, it’s a certainty.
$1 Trillion Every 100 Days: Washington’s Spending Spiral Has No Exit
Rogoff doesn’t mince words. He sees the real problem not just in short-term politics, but in the structural rot underneath it: a national debt ballooning by $1 trillion every 100 days, and a central bank increasingly forced to enable the madness.
“Even if the Democrats had won,” Rogoff points out, “the pressure to accommodate government spending would still be there.”
This isn’t a partisan issue. This is a systemic issue. The Fed’s latest rate cut isn’t proactive — it’s reactive. The economy is stalling, and the central bank has run out of cover.
We're watching the last gasps of a financial system that was never built to withstand this level of monetary distortion.
The Dollar’s Decline Has Already Begun
While the Fed scrambles to keep the house of cards upright, foreign central banks are making their move — out of the dollar, and into hard assets.
“The dollar may be king,” Rogoff warns, “but king of a smaller hill.”
According to his projections, the dollar’s share of global reserves — now just under 60% — could collapse to 35–40% within the next decade. Why? Because other nations are waking up to the weaponization of the dollar through sanctions, surveillance, and political manipulation.
And they’re not just talking about alternatives. They’re buying gold. Lots of it.
More than 2,000 tons of gold have been purchased by central banks in the last 24 months — the largest sovereign gold buying spree in modern history.
“They want assets they can control,” Rogoff said. “They don’t want to be vulnerable when the next geopolitical shock hits.”
China’s Crisis Is Already Here — And the U.S. Could Be Next
Some may argue that the U.S. is still in a better position than its rivals — but Rogoff shuts that down, fast.
“Oh goodness. The Chinese crisis is here,” he said. “They’re looking like Japan... and half of Japan is still terrible.”
In other words: The world’s #2 economy is already spiraling, and the Fed’s rate cut isn’t going to save #1 for long. Rogoff sees both economies locked in a slow-motion breakdown that no central bank can fix.
So what happens next?
Markets may rally on easy money — but the real storm is just beginning. Currency wars. Policy failure. Geopolitical tension. The dollar’s dominance is fraying. And inflation will be the first symptom before the fever breaks the system entirely.
Gold Is Still Gold. Bitcoin Isn’t Ready. The Clock Is Ticking.
When asked what the real safe haven is in this new world, Rogoff didn’t hesitate:
“I know everybody says Bitcoin’s the new gold,” he said. “I like to say gold is the new gold.”
He’s not alone. Central banks — the ones with the most to lose — are preparing for a post-dollar world. Are you?
📉 Don’t Wait for the Crash to Hit Your Account
If this article made you uneasy, it should. Because the signs aren’t just flashing — they’re screaming. The Fed has begun to cut because it has no choice. Inflation is “inevitable,” even the elites admit it. And the dollar's supremacy is slipping, fast.
That’s why I put together:
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The system is shifting beneath our feet. Don’t be the last one out when the exits clog.
Stay sharp,
—Bill Brocius
Founder, DedollarizeNews.com
