Grant Cardone has taken aim at Federal Reserve Chair Jerome Powell, accusing him of being antagonistic toward the Trump administration and potentially trying to block the president's pro-business agenda.
In a May 7 post on X, Cardone said Powell has "already waited too long" to adjust interest rates, arguing that the Fed chief was slow to raise them in the past and is now hesitant to cut them as economic challenges mount.
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Cardone Criticizes Powell's Interest Rate Decisions
Cardone, CEO of Cardone Capital, laid out his case on X, claiming Powell's approach is "always reactionary, never proactive." He pointed to several signs that he says justify immediate rate cuts, including a slowdown in U.S. GDP, the weakest home sales since 2009, and a global economic downturn.
"Tons of economic data support rate cuts," Cardone wrote, adding that the U.S. has "some of the most expensive debt amongst developed nations."
He also pointed out that the U.S. residential and commercial real estate markets are at risk due to the high cost of borrowing, which he argues is squeezing small businesses and homeowners alike.
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Allegations of Political Motivation
Cardone also suggested that Powell's reluctance to lower rates might be politically motivated. He said Powell "appears antagonistic to Trump Administration and Trump's goal to renegotiate international deals via tariffs," suggesting that the Fed chief might be trying to turn populist sentiment against Trump by refusing to cut rates, which Cardone claims is hurting the American middle class and small business.
Cardone implied that Powell's decisions could be a strategic move to create economic headwinds for Trump as the president pursues trade deals supposedly aimed at strengthening U.S. manufacturing and reducing trade deficits.
Fed Holds Rates Steady Despite Uncertainty
This criticism comes as the Fed decided on May 7 to keep its key interest rate steady in a range between 4.25% and 4.5%, citing rising economic uncertainty and the risk of stagflation as U.S. tariffs disrupt global trade.
In a statement released after its latest policy meeting, the central bank said "uncertainty about the economic outlook has increased further." Powell in a press conference later emphasized that the U.S. economy is still in "solid shape" despite recent turbulence.
Cardone's Warnings About Economic Risks
However, Cardone argues that Powell's approach could be putting the U.S. economy at risk, particularly those facing some of the highest debt costs among developed nations.
He warned that Powell's stance might punish the middle class and threaten Trump's broader economic agenda. Cardone's concerns reflect a broader debate over whether the Fed's cautious approach to interest rates is slowing down the economy at a time when it needs support.
Additionally, the Fed's recent statement hinted at the potential for stagflation, a challenging mix of high inflation and slow growth, which hasn't been a significant issue in the U.S. since the early 1980s. This scenario, if realized, could further complicate Trump's efforts to stabilize the economy through trade renegotiations and domestic production incentives.
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