Something big is happening in Washington right now, and it has the potential to reshape everything you and I do as investors.

A few weeks ago, the Trump administration attempted to remove Fed Governor Lisa Cook, only to have an appeals court block the move on legal grounds. 

At almost the same time, Stephen Miran—one of Trump’s economic advisers—was confirmed by the Senate to the Fed’s Board of Governors by a razor-thin margin. 

On one side, an attempted subtraction. On the other, a confirmed addition. All of this is happening right before a major policy meeting, and it’s not hard to see the writing on the wall.

Trump’s takeover of the Fed is not a question of if—it’s a question of when. Whether it unfolds in a matter of weeks or drags out over the next few months, the direction is set and the outcome is inevitable. 

The endgame is to bring interest rates down and, if necessary, use quantitative easing to drive bond yields even lower. That kind of policy would flood the system with liquidity, and the immediate effect would be a booming economy. Asset prices would rip higher—stocks, real estate, gold, Bitcoin—you name it. If you own assets, you’d feel wealthier almost overnight.

But of course, there’s another side to this coin. A dollar that weakens under the weight of easy money. A gap between the asset-rich and the asset-poor that grows even wider. Rising inequality, rising tensions, and perhaps a long-term cost to the credibility of the U.S. financial system.

So is this takeover of the Fed a good thing? That depends entirely on where you sit. If you’re a wage earner with no meaningful assets, it’s bad news. If you’re an investor, it’s a reminder that ignoring policy shifts like this is done at your own peril. 

The time to prepare is now, not later. Don’t wait for rates to drop before acting. History shows that buying assets in a descending rate environment has been one of the most powerful wealth-creation maneuvers in the United States. 

Think back to 2008. The Fed responded to the financial crisis with unprecedented rate cuts and waves of quantitative easing. What followed was more than a decade of explosive gains in stocks, real estate, and other assets. 

Those who bought while rates were falling built extraordinary wealth. Those who stood on the sidelines missed out.

But don’t take my word. Listen to noted economist Richard Duncan explain the dynamics of this situation in this week’s episode of Wealth Forula Podcast. 

Learn more about Richard Duncan:

richardduncaneconomics.com

Transcript

Disclaimer: This transcript was generated by AI and may not be 100% accurate. If you notice any errors or corrections, please email us at phil@wealthformula.com.

By devaluing the dollar by 50% against the end of the mark by 1990, the trade deficit that had come back into balance.

Welcome everybody. This is Buck Joffrey with the Wealth Formula Podcast. Coming to you from Montecito, California. Uh, today before I begin, just a reminder. Go to wealth formula.com. If you haven’t done so and you are an accredited investor, join the Accredited Investor club. Lots of things coming in there in Q4.

Lots of tax mitigation, strategy related investments, that kind of thing take advantage a hundred percent. Bonus depreciation, take advantage of discounted assets and so on. So again, wealth formula.com. Now, uh, let’s talk about today’s show. Interesting one. Um, it’s with, uh, Richard Duncan again. Uh, and, uh, he’s an interesting guy, uh, and I wanted to talk to him because something big is happening in Washington right now, as you know, and it has the potential to reshape everything you and I do as investors.

As you may know, and as I am sure you probably know, a few, a few weeks ago, Trump administration attempted to remove, uh, fed Governor Lisa Cook, only to have appeals. Courts block, uh, and, uh, uh, move block the move on legal grounds. And at almost the same time, Stephen Moran, one of Trump’s economic advisors, was confirmed by the Senate to the Fed’s Board of Governors, uh, and uh, on one side and attempted a subtraction on the other, a confirmed edition.

All of this is happening right before a major policy meeting, which by the time you hear this is going to be. Uh, concluded, which is the, uh, announcement of either a 25 or 50, uh, basis. Point cut. Uh, you tell me because I’m doing this right before that meeting, uh, Trump’s takeover of Fed is, you know, really not a question of if it’s a question of when and how, and.

Whether it unfolds in a matter of weeks or drags out over the few months, uh, the direction is set and the outcome really, in my view, is inevitable. Right? The end game. What is the end game? The end game is to bring interest rates down and if necessary, use quantitative easing to drive bond yields down as well.

And that kind of policy. What would happen? It would basically flood the system with liquidity and immediate effect would be booming. To the economy, right? Asset prices would rip higher stocks, real estate, gold, Bitcoin, you name it. If you own assets, you will feel wealthier overnight. But of course, there’s another side of this coin.

Uh, you know, a dollar that weakens under the weight of easy money, a gap between the asset rich and the asset poor that grows even wider rising inequality, rising tensions, and perhaps the long-term cost of credibility of the US financial system. So the question is. You know what, this whole takeover thing, it sounds, you know, uh, it sounds sneaky, it sounds bad, and especially on the, if you listen to mainstream television, but is it such a bad thing, the takeover of, of the Fed?

That depends entirely where you sit. If you’re a wage earner with no meaningful assets, if you’re poor, it’s bad news. If you’re an investor, it’s a reminder that ignoring policy shifts like this is done at your own peril because the time to prepare is now. Don’t wait for rates to drop before acting.

History shows that buying assets in a descending rate environment has one of the most powerful wealth creation maneuvers in the history of the United States. All you have to do is look back in 2008, the Fed responded to the financial crisis with unprecedented rate, cuts and waves of quantitative easing.

And what followed was more than a decade of explosive gains in stocks, real estate, and other assets, which basically just ended. I mean, gosh, right? So those who bought while rates were falling, built extraordinary wealth, and those who stood on the sidelines missed out. And that is playing out in real time again, in my opinion.

But don’t take my words for it. Listen to Richard Duncan. Uh, he is clearly not a pro. If you’ve listened to him in the past, he calls balls and strikes, and if anything, he’s been sort of not on board with the Trump administration, the plan, but listen to what he has to say about this. We’ll have that interview right after these messages.

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He’s been on the show, uh, several times before. He is an economist, an author known for his work on the global financial system and credit dynamics. He’s the creator of Macro Watch, which is an online video newsletter analyzing economic developments and the author of several influential books, including The Dollar Crisis, the Corruption of Capitalism, and The New Depression.

Uh, how you doing there? Uh, Richard. Great buck. Thanks for having me back on. Yeah. Nice to talk to you. You’re in, uh, Thailand, right? That’s right, that’s right. Well, good to, good to uh, uh, connect. It’s a sort of an unusual time. I think my time here is now 6:00 PM and, uh, it’s what, eight 8:00 AM your time. Uh, so it’s, it’s, it’s interesting how, uh, the business ever gets done between those two countries.

But, um, anyway, um. It’s hard during this podcast with the strange hours between gear and there. Yeah, yeah, yeah. Absolutely. Well, let’s talk about some of the things that you’ve been talking about. Uh, first topic, I think, um, that you’ve been sort of, uh, talking about is Will Trump and the Fed. And, um, so you have a video where you asked that question and you say that the, the Fed independence could become, uh, be coming to an end.

Tell us what that really means. Tell us what the background is here. Well, yes. Let me do again with the background. Yeah, because we really are living in extraordinary times as far as developments in the US and the global economy go. President Trump is very serious about remaking the American economy.

When he says, make America great again, he means it. And his plan to do that is to re industrialize the United States and to do that, he has a strategy. There’s a ver