THE FED’S NEXT MOVE: RATE CUT TO BLEED THE DOLLAR AND JUICE GOLD

Powell Hints at September Rate Cut as Economic Cracks Widen

On August 22nd, under the sterile cover of a central bankers' retreat in the globalist echo chamber of Wyoming, Fed Chair Jerome Powell signaled what we’ve been warning about all along: the Federal Reserve is prepping to slash interest rates again—possibly as early as September.

Powell admitted the obvious—there's a "shifting balance of risks" that may force the Fed to "adjust our policy stance." Translation? The economic rot is now too glaring to ignore. He also warned that inflation pressures, fueled by tariffs, could become a persistent beast. So while the Fed preaches caution on rising prices, it's also whispering about cutting rates. Pick a narrative, Jerome.

But here's the kicker: Powell acknowledged that the labor market is unraveling, and fast. "Downside risks to employment are rising," he said, noting that if things go south, job losses could hit like a freight train.

Inflation Surges While Jobs Tank—Fed’s Priorities Flip

The Fed's so-called “dual mandate” is to keep inflation in check while supporting employment. But inflation’s already blazing past the 2% “target” (clocking in at 2.7% last month), while the job market took a nosedive in Q2. So Powell’s priorities have shifted—again. Now it’s all about trying to kickstart hiring by making cheap money even cheaper.

According to Steven Stanley of Santander U.S. Capital Markets, the Fed’s rate-setting crew is fractured. Some want multiple cuts this year. Others are clenching their pearls over price spikes caused by Trump’s trade war. A third camp seems content with a token quarter-point cut in September, then a "wait and see" approach—classic Fed doublespeak for "we have no clue."

Markets Cheer While Central Bankers War Over Strategy

The markets, as always, lapped up Powell’s ambiguity. After last week’s tech crash, equities rebounded and bond prices firmed. Powell winks, Wall Street grins.

Matthew Luzzetti from Deutsche Bank echoed this slow-bleed approach to monetary policy. Speaking to Bloomberg, he predicted a rate cut in September, with future moves dependent on the same manipulated data the Fed's been cooking for years.

After slashing rates by a full point last fall, the Fed’s been frozen in place this year, trying to assess the inflationary wreckage caused by tariffs. Meanwhile, inflation keeps rising, and the labor market is turning into a minefield.

Fractured Fed: Internal Divide Over Next Move

The Fed board isn’t just split—it’s in civil war. Doves like Michelle Bowman and Christopher Waller are openly calling for lower rates now. But Cleveland Fed President Beth Hammack just put her foot down, saying she wouldn’t back a cut today. Kansas City Fed’s Jeffrey Schmid told Bloomberg he wouldn’t be shocked if rates went up instead. Fantasyland.

Raphael Bostic from Atlanta represents the centrist camp—his strategy: cut once, then “wait for more data.” In other words, bureaucratic paralysis wrapped in spreadsheets. Minneapolis Fed's Neel Kashkari admitted the obvious: sometimes you have to move first, then reverse course. Which begs the question—do these guys even have a plan?

Joe Brusuelas at RSM US LLP spelled it out for investors: don’t overlook the Fed’s internal tug-of-war between inflation control and employment. He’s calling it a “one-and-done” rate cut scenario. But don’t count on that. Central banks rarely settle for just one shot of easy money.

TREND FORECAST: The Dollar Dies, Gold Rises, and Trump Looms

Here’s the cold truth: when rates go down, the dollar takes a dive. And when the dollar dives, gold doesn’t just go up—it roars. Why? Because gold is priced in dollars. When the greenback weakens, it becomes cheaper for every other nation to buy up gold, which sends its price climbing.

But there's a deeper play here.

Jerome Powell’s term expires next May. And with Trump angling for a second shot at the White House, you better believe Powell’s going to be leaned on—hard. Just like in 2018, when Trump blasted Powell for rate hikes that tanked the Dow during the worst December since the Great Depression.

Mark my words: Trump will shove Powell toward lower rates to artificially inflate the markets. And when Powell’s gone, Trump’s next Fed pick will be a loyalist—someone who takes orders. Translation? Get ready for even more monetary distortion, asset bubbles, and a dollar that gets treated like toilet paper.

This isn’t just a monetary policy story—it’s a battle for financial sovereignty.

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