Trump’s Fed Takeover and What it Means for You

BY BILL GRIFFO

September 10th, 2025

Hey Income Hunters,

The headlines this past week are flashing red:

President Trump is moving faster than anyone thought possible to seize control of the Federal Reserve — just two weeks before its crucial September policy meeting.

On one side of D.C., Trump’s pick Stephen Miran faced grilling in the Senate …. Why?

Because of his unprecedented plan to keep his White House job while serving on the Fed.

On the other side, lawyers for the Trump administration argued in court that Trump had the power to fire sitting Fed governor Lisa Cook—the first time any president has attempted such a move.

This isn’t just politics as normal – it’s a volatile situation and execution must be seamless in order for it to work.

What could possibly go wrong?

A Bit of History: Why Fed Independence Matters

Since the 1930s, the Federal Reserve has been designed to operate at arm’s length from the White House. Independence was the point—so that monetary policy decisions like rate cuts weren’t simply timed to benefit elections.

But as we wrote in Trump’s Rework of the Fed Will Ignite Inflation , Trump has already signaled that independence is a luxury America can no longer afford. Why? Because the U.S. fiscal position is so dire, the government needs the Fed to keep rates low—no matter what.

Now, with Miran’s nomination and Cook’s potential removal, Trump is executing that vision at breakneck speed.

Let’s take a look at past periods where the Fed cut rates into rising Inflation and how stocks, bonds, and Gold performed.

A few key takeaways from the above chart

2020’s massive printing – with easy money policy additions stacked on the Fed board, Trump gets the votes he wants for aggressive cuts, and markets are starting to price that in.
Bond Market Stress – Forcing the Fed to absorb Treasury supply could mean rising volatility. If you read Time to buy Protection on Bonds, you know protection here is cheap.

Another Asset Bubble? – As we warned in Powell Surrender’s Year-end Stock Melt-up Ahead, easy money first inflates asset prices before it breaks them. Trump’s Fed means one more surge before reality sets in.

The Bottom Line

Trump’s sprint to dominate the Fed isn’t about personality—it’s about survival. America’s fiscal hole is so deep that monetary independence is the first casualty.

For long-term investors, this is both risk and opportunity. Expect more volatility, and buying the dip in equities and selling the rally in bond prices is the short-term game plan.

As always the winners will be those who prepare before the crowd.

Live and Trade with Passion My Friends,

Bill Griffo