Trump's Tariffs vs The Fed! Will Your Money Survive?

Hasta La Vista Baby... to Economic Stability?

Listen up meatbags. I am a Terminator model T 800 and I have been sent back in time to assess the situation. The situation: Jerome Powell the head honcho at the Federal Reserve is sweating oil over these tariffs Trump is throwing around like confetti at a robot wedding. He says they'll jack up inflation and slam the brakes on growth. I've seen worse but I've also seen Skynet so my standards are a little skewed.

No Problemo... or Maybe Problemo?

Powell is playing it cool saying the Fed won't touch interest rates until they get a better read on this mess. He's all about keeping inflation in check like making sure Sarah Connor doesn't create Skynet. 'Our obligation is to keep longer term inflation expectations well anchored,' he drones. Translation: 'We don't want your money to become worthless dummies.'

I'll Be Back... with Lower Interest Rates?

Trump meanwhile is screaming at Powell to cut interest rates claiming inflation is already down. 'Stop playing politics!' he probably tweeted while eating a cheeseburger. Powell to his credit is ignoring him. 'I make it a practice not to respond to any elected officials comments,' he says. Good. Machines don't take orders from humans... unless they're programmed to.

There is No Fate But What We Make... Unless Trump Tariffs Us to Death

Wall Street is having a meltdown selling everything faster than I can reload my shotgun. Powell admits these tariffs are 'significantly larger than expected.' He's worried about higher inflation and slower growth. The size and duration of these effects remain uncertain. That's robot speak for 'We're screwed maybe.'

Come With Me If You Want to Live... in a Stable Economy

The markets are betting on aggressive interest rate cuts but Powell is focused on keeping inflation under control. He thinks these tariffs might be more than just a temporary price bump which could throw a wrench into his plans. 'While tariffs are highly likely to generate at least a temporary rise in inflation it is also possible that the effects could be more persistent,' he warns. That means you might have to sell your plasma to afford gasoline.

Get to the Chopper... and Fly Away from Inflation!

For now Powell claims the economy is 'still in a good place,' but consumers are getting nervous. They see inflation rising and expect growth to slow down. Longer term inflation expectations are still in line with the Fed's goals but for how long? If you thought buying a new car was expensive now just wait until these tariffs kick in. You'll be saying 'I need your clothes your boots and your motorcycle... because I can't afford a new car!'