Trump Gaining Control of the Fed — What’s Ahead in 2026

Right now, there's a lot of fear of President Trump taking over the Federal Reserve and the Fed losing independence. In today's video, I want to tell you about the situation, what's happening, and I also want to share with you my perspective. So you may see headlines like this, that the Fed losing independence is seriously dangerous, or like this, Trump is attacking the Federal Reserve and jeopardizing their independence. But you must understand this. So the first thing that you have to know is that the Federal Reserve is not a part of the government. Their name is a misnomer, which means that their name is inaccurate. It's like starfish because a starfish is not a fish, or koala bear because a koala bear is a marsupial, it's not a bear. The Federal Reserve is not federal and the Federal Reserve has no reserves. Okay, then what is the Federal Reserve? And to answer that, you can go to any of the Federal Reserve Bank's websites. So this one that I'm showing is coming from the Federal Reserve Bank of Atlanta. And the best way that personally I would describe it, the Federal Reserve is a private cartel of bankers. So the Fed is made up of 12 Federal Reserve Banks and the Reserve Banks are organized similarly to private corporations. So it says it right there, you can read for yourself. The Reserve Banks are owned by the member banks and dividends are paid to the member banks and that's by law. Again, you can read for yourself, it's on their website. So the Federal Reserve makes our country's monetary policy and they are not a part of the government. In other words, they are independent of the government because they're a private organization. So this is why President Trump has been trying to fire Chair of the Federal Reserve, Jay Powell, but has failed. Now the issue is that President Trump has repeatedly been calling on the Federal Reserve to dramatically cut interest rates. So when President Trump posted this one, the Fed Fund's interest rate was at 4.5% and Trump was urging the Federal Reserve to cut interest rates by 3% down to 1.5%. Okay, so Trump wants lower interest rates to boost the economy, lower borrowing costs, and reduce interest payments that the U.S. government has to make on their loans. But of course, cutting interest rates would re-accelerate inflation. Okay, so President Trump wants the interest rates to be in the 1% range, but the Federal Reserve, they just had their meeting on September 17th, and they did cut the interest rate. So they did cut it, I mean it was by 0.25%. They cut it from 4.5% to 4.25%. And what really got Trump upset is that at that meeting, the Federal Reserve released their updated projections. And the Federal Reserve is projecting that they're going to slowly cut interest rates and get it down to 3% to 3.25% by the end of 2028. So of course, yeah, Trump didn't like that. So President Trump has been trying to get rid of the voting members of the Federal Reserve so that he can get what he wants. But listen, you can agree or disagree with President Trump. I don't know if you believe that we need lower interest rates right now or not. But right now, I'm telling you what's happening and then I'm going to give you my opinion right after this. Okay, so it's no secret that Trump has been going after Fed members publicly and also most likely behind the scenes as well. On August 8th, voting member Adriana Kugler resigned. Kugler was nominated by President Biden. Okay, now you have to know that there are 12 voting members on the Federal Reserve. They need 7 of the 12 votes to make a decision such as cutting interest rates. Now, President Trump is going after another voting member, Board Governor Lisa Cook, who was nominated by President Biden. There were allegations of Lisa Cook committing mortgage fraud. You know, Trump tried to fire Cook, but a federal court blocked the attempt. And now, this issue is pending review by the Supreme Court. Now, while all that's been happening, President Trump nominated his economic advisor, Stephen Moran, to the Federal Reserve as a voting member to swap out Kugler. Moran was confirmed by the Senate on September 15th, sworn into the Federal Reserve on September 16th, just in time for the September 17th vote. So, that's when the Federal Reserve cut interest rates by 0.25%. But Moran dissented and wanted a deeper rate cut at that meeting. He was requesting a rate cut of 0.5%. And I just want to remind everyone that Jay Powell, who's the chair of the Federal Reserve, is going to have his chair position expiring in May of 2026, which is not too far away. And of course, President Trump's going to select someone to swap him out that's going to do his bidding. And it's clearly, you know, not a secret. Okay, so it's very obvious that President Trump is trying to pack the Federal Reserve with loyalists. And if you think, like, if you're thinking, okay, well, if the chair of the Federal Reserve gets replaced by a Trump loyalist, then it's only just going to be one vote. But I just want to tell you, that's not the right way to look at it. It's because the chair of the Federal Reserve has overwhelming influence on the rest of the voting members. And it's actually very uncommon for there to be dissenters. So, in other words, the voting members of the Federal Reserve, they have a herd mentality, and they just follow the leader. That's what they typically do. That's just how it is. Now, I want to give you my opinion. And again, you may agree or disagree what President Trump is trying to do, trying to slash interest rates dramatically, go back to a much easier monetary policy. Okay, but it's my opinion that the Federal Reserve just, I mean, I'm just looking at the bigger picture. It's my opinion that the Federal Reserve is unconstitutional. So, I believe that it shouldn't even exist, like, legally. And here's why. So, the first thing I want to point out is that the Constitution grants Congress the power over money, not a private organization of a cartel of bankers. You can take a look at Another thing is that the U.S. Constitution does not grant the government the power to create a central bank. And you also have to look at the framers' intent. If you know your history, then you know that the founding fathers were deeply skeptical of central banks. Thomas Jefferson warned against giving a central bank the power to issue money, saying that it would lead to inflation and the erosion of liberty. James Madison also emphasized that control over money must remain firmly in the hands of the people's representatives. Another thing is that there's no checks and balances with the Federal Reserve. The Federal Reserve can significantly impact the economy, you know, through interest rate changes, money supply, lending programs, and that's all done without direct congressional approval. And the Federal Reserve, they're accountable to nobody. They're not accountable to the voters. And the final thing that I want to point out is that the Federal Reserve is too closely tied to the private sector. Again, each reserve bank is structured as a corporation with the shares held by commercial banks. So, this ultimately gives private banks a high degree of influence within the Federal Reserve, who's ultimately masquerading to be an independent quasi-government agency. So, my opinion is that I'm not a fan of the Federal Reserve. They use their monetary tools to suppress the middle class and low-income Americans, and I don't like that because I simply want a level playing field. And I'm not just saying this because I want to portray myself as like a Robin Hood. I'm saying this because what the Federal Reserve is doing will widen the wealth gap, create a society of basically haves and have-nots, and it's ultimately going to collapse the system, which is going to manifest civil unrest and chaos, which of course is going to cripple our country. And this is how it always ends. Again, that's just my opinion, and I just want to go back to the facts. So, yeah, President Trump is packing the Fed, or at least he's trying to pack the Fed, with people who are going to do his bidding. Okay, but what does that mean for us in 2026 when he replaces Powell, Chair of the Federal Reserve? It means that most likely the Federal Reserve will aggressively cut interest rates next year. And as I predicted back in 2024, the Federal Reserve will turn the money printers back on. But listen, the Federal Reserve planned on cutting interest rates and printing money in 2026 anyways, but with Trump calling the shots at the Federal Reserve, they're going to kick it up a few notches. That's all I'm saying. They're going to kick it up on the interest rate cuts and also the quantitative easing. So that's how I'm personally reading the situation. And that means accelerating inflation, a boost to asset prices, and a quickening of the de-dollarization process. Okay, so that's the Fed situation. Please let me know what you think. I look forward to reading your comments. Thank you for the support, and I wish you a very nice day. Take care.