Why Powell Will Cut in September

EDITOR'S NOTES

Powell’s not some cowboy slinging bullets of truth—he’s a suit, a servant of Wall Street, and the high priest of the Federal Reserve’s never-ending confidence scam. September’s shaping up to be the next great chapter in the Fed’s long con. The markets are high, the masses are sedated, and the banking system is cracked like old drywall. But what’s Powell do? He cuts. Why? Because under the surface, the whole house of cards is shaking. And the Fed is out of aces.

Derek Wolfe Aug 22, 25

Powell: Lawyer, Not a Leader

Jerome Powell doesn’t like drama. He’s no Volcker lighting cigars with inflation stats. He’s no Greenspan grunting riddles. He’s not even Bernanke, the deer in the economic headlights of 2008. Powell is a corporate lawyer in central banker cosplay—risk-averse, market-friendly, and allergic to surprises.

Except last September. Then he dropped a 50bps rate cut out of nowhere—what for? To breathe life into Kamala Harris’ poll numbers? If that was the play, it flopped harder than CNN+.

So here we are again. Stocks soaring. Inflation cooling. Unemployment low. And Powell? He’s warming up the scissors. Why? Because just under the glossy economic veneer, the system’s rotting from the inside.

The “All Clear” Cover Story

Inflation: Close Enough to Lie About

The CPI is down to 2.73%. Not quite the Fed’s mythical 2%, but close enough for Powell to declare “mission accomplished” and move on. In central banker math, rounding is a feature, not a bug.

Jobs: Still Strong Enough to Fake It

Unemployment is at 4.2%—low enough to look “resilient,” high enough to hide the cracks. It’s a politically convenient number. Don’t ask questions.

Markets: Euphoria as Camouflage

Stocks are ripping. Nobody can accuse Powell of panicking. A rate cut now looks like confidence, not capitulation.

This gives Powell his cleanest shot: cut without looking weak. Say “we’ve won the inflation war,” and pretend it’s all part of the plan. It’s pure theater. And Wall Street’s buying front-row seats.

The Real Reason Behind Powell’s Move: Fragility in the Foundation

The real drivers are buried in the guts of the financial system—duct-taped debt, twitchy banks, and a dollar that’s getting too heavy to carry.

Corporate Debt Time Bomb

For a decade, corporate America feasted on free money. Now their bond payments are coming due—with 5–6% rates instead of 2%. That’s a death spiral in slow motion, and Powell knows it.

Banks Still on the Edge

Silicon Valley Bank wasn’t a glitch—it was a warning. Regional banks are still choking on underwater Treasuries. Keep rates high, and another domino falls. Then another.

Dollar Doomsday

With other central banks easing, the dollar’s on steroids. Too strong a dollar means wrecked exports, ruined emerging markets, and debt defaults from Istanbul to Buenos Aires. Powell doesn’t want that carnage landing in October—just before elections.

The Elephant: Politics in the Room

Let’s kill the myth. The Fed isn’t apolitical. It’s a tool—shiny, sterile, and weaponized by the establishment.

Powell doesn’t want to be the guy who torpedoes the economy just as Trump staggers back into office. He doesn’t love Trump—but he sure doesn’t want to be scapegoated by him either. A September cut gives Powell his PR cover:

“Inflation’s under control. Time to support growth.”

Translation: “I’m not screwing this up on my watch.”

It’s Washington-speak for “don’t blame me.”

The Powell Put Lives

Wall Street’s been conditioned like Pavlov’s mutts. Powell rings the bell—stocks jump, liquidity flows, credit stays cheap.

By cutting in September, Powell feeds the addiction. Keeps the “Fed Put” alive. He’s not saving Main Street. He’s juicing Wall Street. IPOs flow, bubbles inflate, and no one asks the hard questions—until it all unravels.

Why Wouldn’t He Cut?

Seriously—why not?

Inflation’s not a real obstacle. Numbers are pliable.
Unemployment isn’t surging. No problem there.
Markets aren’t tanking. In fact, they’re frothy.

Cutting now costs nothing. But not cutting? That risks a meltdown Powell doesn’t want pinned on him.

History Rhymes, and Powell’s Just Another Verse

Greenspan cut pre-emptively in the ‘90s. Bernanke waited too long and got run over. Yellen blinked at the first market hiccup. Powell’s no different—just another bureaucrat trying not to crash the machine while pretending he’s steering it.

September won’t be bold. It’ll be predictable. A rate cut dressed in nonsense about “balance” and “growth.”

Wrap-Up: Powell, the Errand Boy

He’s not Volcker. He’s not even Yellen. Powell is Wall Street’s concierge—handing out rate cuts like mints at the end of a steakhouse dinner.

A rate cut this September isn’t about economics. It’s about optics. It’s about preserving the illusion of control while the foundations crumble.

So don’t be surprised when Powell delivers exactly what Wall Street wants—one more fix, one more round of QE hopium.

It’s not courage. It’s not caution. It’s self-preservation.

The Powell Put is alive and well. The con continues.

Call to Action

If you think this ends well, you haven’t been paying attention. The system’s breaking—but you don’t have to break with it. Download Seven Steps to Protect Yourself from Bank Failure by Bill Brocius. Get it now and armor up before Powell’s next performance.

This is the real game. Don’t get played.
—Derek Wolfe