from Rebel Capitalist
U.S. Risks Turkey-Type Descent Into Hyperinflation if Trump (Like Erdogan) Takes Control of Rates, Nobel Economist Krugman Warns
by Akin Nazli
IntelliNews
The US is risking a dark descent into hyperinflation of the type experienced by Turkey due to Donald Trump’s insistence on bringing in lower policy rates, Paul Krugman, the 2008 winner of the Nobel economic sciences prize, wrote on April 18 in his blog.
Lately, President Trump has been increasing the pressure on Fed governor Jerome Powell to cut the US policy rates.
Since November, when Trump won his second term in the White House, bne IntelliNews has been cautioning that Trump will “definitely be inflationary”.
“He will push the Fed to cut rates more extensively and pump in more liquidity,” this publication noted on November 10.
Foreigners Flee the U.S. Dollar
by Alasdair MacLeod
Gold Money
Anti-dollar sentiment is underestimated, and loss of credibility has only just started. A perfect storm is driving gold higher and the dollar down, compounded by systemic issues.
In this market report for precious metals, we examine the factors driving gold higher. Its remarkable performance is doubtless confusing the wider public, leaving investors in western financial markets invested in non-performing assets while missing out on gold.
So far this year, gold is up 24%, copper 15.5%, and silver 10.15%. The S&P 500 is down 11.5% and the 10-year US Treasury Note up 2%. The least exposure general investment portfolios have is to gold and its investment substitutes.
MN Gordon: Trumpism and the Fading Dollar
by Matt Morgan
The Daily Bell
Breakdown and Reordering of Trade
The breakdown and reordering of global trade via President Trump’s tariff policies will have many consequences. Long established trade relationships come with mutual dependency. Abruptly severing or restricting these ties will yank the rug out from under how people the world over pursue their livelihoods.
America imports and consumes massive amounts of goods and products Made in China and other Asian countries. Trump’s trade tariffs put the export driven economic models of these countries at extreme risk.
America accounts for over 30 percent of the world’s consumer spending. Should tariffs limit the ability for countries to export goods to America, they will be left with a massive supply glut. Thus, they will have two options: Increase domestic consumption. Or decrease production.
“He Who Has the Gold Makes the Rules” President Trump Proclaims Over Easter Weekend
from Zero Hedge
While many are still wondering about whether or not the audit of Fort Knox is happening, it doesn’t seem like President Trump doubts the country’s gold holdings.
With gold surging through $3420/oz. for the first time ever this morning, many are pointing back to one of President Trump’s Truth Social posts from yesterday. Trump wrote on Easter: “THE GOLDEN RULE OF NEGOTIATING AND SUCCESS: HE WHO HAS THE GOLD MAKES THE RULES. THANK YOU!”.
Recall, in early 2025, Donald Trump and Elon Musk publicly questioned whether Fort Knox still holds its gold reserves. Trump announced plans to visit the site, while Musk suggested a live-streamed inspection, saying, “Maybe it’s there, maybe it’s not.”
The Trump Trade: USD/JPY at Critical Juncture as Inflation and Trade Risks Mount
Trump’s aggressive trade policies have shaken global markets and triggered currency volatility. Rising tariffs, inflation risks, and political pressure on the Fed are weakening the US dollar. Moreover, the Japanese yen is gaining strength as a safe haven. As a result, USD/JPY trades at a critical support level near 140, where a breakdown could signal a long-term decline.
by Muhammad Umair
FX Empire
How Trump’s Trade Policy Is Shaking Global Markets
China’s Response and Global Market Impact
Trump has raised tariffs on Chinese goods to 145% and introduced “reciprocal tariffs” on multiple countries. These aggressive actions disrupted trade flows and added pressure on global supply chains. As a result, China’s Ministry of Commerce vowed strong retaliation and warned that any country siding with the US would face countermeasures. This geopolitical threat has created uncertainty across Asia-Pacific markets, with Japan’s Nikkei 225 dropping to around 26,500 on Monday.
Chicago Fed’s Goolsbee Says Fed Independence is ‘Critically Important’ for Its Inflation Fight
by Yun Li
CNBC.com
Federal Reserve Bank of Chicago President Austan Goolsbee on Monday urged against reducing the central bank’s independence as President Donald Trump amped up criticism of Chair Jerome Powell.
“The long-run expectations that the Fed would get inflation back down to the 2% target were critically important. Fed independence is critically important for that,” Goolsbee said on CNBC’s “Squawk Box.”
“When there is interference over the long run, it’s going to mean higher inflation, it’s going to mean worse growth and higher unemployment, because there’s just going to be a little less willingness to step up and do the hard things when the moment is tough,” he said, while declining to comment directly on what Trump has said.
Political Interference with the Fed Would Mean Worse Inflation and Higher Unemployment, Top Official Says
Messing with the Fed’s independence could result in higher inflation and joblessness, Austan Goolsbee said.
by Jennifer Sor
Business Insider
Meddling with the Federal Reserve’s ability to independently set interest rates could result in dire consequences for the economy, Chicago Fed President Austan Goolsbee said on Monday.
The top official underscored the importance of Fed independence in an interview with CNBC on Monday, adding that political meddling with the central bank could result in hotter inflation and higher unemployment.
“When there is interference over the long run, it’s going to mean higher inflation, it’s going to mean worse growth and higher unemployment, because there’s just going to be a little less willingness to step up and do the hard things when the moment is tough,” Goolsbee said.
Trump Never Cared About Inflation
by Rick Newman
Yahoo! Finance
Here’s Donald Trump as a presidential candidate in 2024: “We’re going to bring prices way down, and we’re going to get it done fast.”
Here’s Donald Trump as president in 2025: “I couldn’t care less if [automakers] raise prices. “I couldn’t care less. I hope they raise their prices.”
Trump’s pledge to battle inflation during the 2024 presidential campaign helped get him elected. Voters clearly felt stung by the elevated prices of the Biden years and thought Trump would bring relief.
Trump’s inflation rhetoric from 2024 now looks like one of the most rapidly abandoned campaign promises in political history. Trump has imposed massive import tariffs that are overtly inflationary and make thousands of everyday products more expensive. On top of that, Trump is now trying to pressure the Federal Reserve into adopting a monetary policy that would make inflation even worse.
Powell Warns of Stagflation
by Martin Armstrong
Armstrong Economics
Socrates has honed in on 2025 becoming a year of great stagflation in the United States. The Federal Reserve has finally admitted that the data is undeniable—the United States will experience stagflation.
The economy is declining but prices are rising. Most understand inflation, especially in the post-COVID world, but few understand stagflation. Stagflation is when you have high inflation and stagnant economic growth at the same time. Normally, inflation is supposed to go hand in hand with rising demand and growth. But during stagflation, prices go up even though the economy is barely moving.
“Powell said the president’s tariffs announced so far had been ‘significantly larger than anticipated’, adding that ‘the same was likely to be true of the economic effects, which will include higher inflation and slower growth’,” as reported by every major media outlet. Powell “later added that those economic effects may place US rate setters ‘in the challenging scenario in which our dual-mandate goals are in tension’. The Fed’s dual mandate is to maintain the target 2% inflation while encouraging “maximum” employment levels.
The Great Dollar Debacle
by David Haggith
GoldSeek
Since Tuesday afternoon, the dollar has been trading below par with the other currencies that compete against it as global trade currencies. It’s been three years since the dollar reached down to this level. While that is far from earth-shattering, the cause is unique—never seen over all the decades the dollar has served as a global currency. It has fallen, as I wrote earlier this week due to flight of major capital from US Treasuries, and that is now the talk of Wall Street.
Suddenly financial news is full of articles asking if this is the death of the dollar, as I warned back at the start of the year we might see later this year due to tariffs, having never been a “dollar collapse” guy in any of my previous years of writing about economics, even when I was working as the editor of Dollar Collapse, founded by John Rubino. (That post I took on because I do believe in the site’s general tenets that the US has been relentlessly moving toward a state of deep economic failure.)