# The Fed Just Did Something No One Expected

## Метаданные

- **Канал:** Minority Mindset
- **YouTube:** https://www.youtube.com/watch?v=HVaNBchMIZg
- **Дата:** 30.04.2026
- **Длительность:** 20:05
- **Просмотры:** 365,798

## Описание

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The New Fed Chair's Plan to Cancel America's $39T Debt Crisis
https://youtu.be/ac4TtVSQKM0


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DISCLAIMER CONT'D: I'm just a random guy on YouTube so do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

## Содержание

### [0:00](https://www.youtube.com/watch?v=HVaNBchMIZg) Segment 1 (00:00 - 05:00)

The Federal Reserve Bank just made three major announcements that you want to pay attention to because this can not only impact the economy and the stock market, but it can also impact the value of your paycheck. Number one, the Federal Reserve Bank said that they're not going to cut interest rates, which is what President Trump has been demanding. They're also not going to raise interest rates. They're going to keep interest rates exactly where they are because the Fed does not know where the economy is moving. Number two, the Fed said that this decision to not cut or raise interest rates resulted in the most divisive vote in the Federal Reserve Bank that they have seen in decades. Because now we have some Fed members saying that we need to raise interest rates to save the dollar. We have other Fed members saying we need to cut interest rates to save the economy. And now we're starting to see this fighting inside of the Federal Reserve Bank. And three, this was Jerome Powell's last time leading this speech by the Federal Reserve Bank because the current chairman at the Federal Reserve Bank is a guy by the name of Jerome Powell and his term is expiring on May 15th. We already knew that. But the announcement that he made, Jerome Powell, was that he's going to be stepping down as the chairman, but he's not leaving the Federal Reserve Bank. What he said is this, quote, "I will not leave the board until this investigation by the Department of Justice is well and truly over with transparency and finality. " Now, the reason why that matters is because when the Federal Reserve Bank makes a decision to cut interest rates or raise interest rates, the Federal Reserve Bank needs a majority vote. And there are 12 voting members. Now, if you've been keeping up with the financial news at all, which we've been talking about in Market Briefs, you know that President Trump has been demanding lower interest rates by the Federal Reserve Bank. Well, the person that's been getting all of that heat [snorts] has been Jerome Powell because he was the chairman at the Federal Reserve Bank and he's been saying we're not going to cut interest rates because of concerns about inflation. Well, when Kevin Warsh was coming in because President Trump nominated Kevin Warsh, the idea was that President Trump was going to get a new vote and that's going to help sway the Federal Reserve Bank to cut interest rates. But now, because of this investigation by the Department of Justice, it looks like Jerome Powell is going to step down as the chairman, but he's not going to be leaving the Federal Reserve Bank, which means his influence will still be there, which might make it more difficult for President Trump to get the lower interest rates that he wants even though the new chairman at the Federal Reserve Bank is going to be a guy by the name of Kevin Warsh, who is somebody that President Trump appointed. But we'll talk more about that there are some bigger problems that you want to be aware of that the Federal Reserve Bank had is kind of alluding to that you want to understand. And number one is the net interest trigger. The idea being, right now the United States government has more than 39 trillion dollars of national debt. What does that mean? That means that the United States government has spent 39 some trillion dollars that they have not generated. They borrowed this money from regular people like you and me. They borrowed this money from foreign countries like Japan, China, the United Kingdom. And they've also borrowed this money from the Federal Reserve Bank. Well, now the cost of servicing that debt is adding up because the United States government is paying more than a trillion dollars a year in interest. And the United States government has one source of revenue, tax dollars from taxpayers, which means about 20 cents of every dollar that you pay in taxes is going directly in interest payments on the debt. Which means yes, 20% of your taxes are just going in interest. And now the Federal Reserve Bank is going to have to make a decision. Are they going to focus in on inflation and the economy, which has been their traditional focus, or are they now going to focus in on this net interest problem? And this is where a lot of people are now starting to say that the Federal Reserve Bank's focus, jobs, and duty are going to change from trying to stimulate the economy and keeping inflation down to trying to save the United States dollar and trying to save this interest cost. By the way, we've been keeping everybody posted on our Market Briefs newsletter about this. Market Briefs is my free newsletter for investors where every day we're breaking down what's happening in things like the economy, housing, stocks, crypto, and global markets. It's read by hundreds of thousands of investors every single day. And when you sign up as an added bonus, you're also going to get my free investing masterclass where I'm going to walk you through how you can get started as an investor and find hidden investment opportunities before they hit the headlines. I'll show you the exact framework that my firm and I use to research investment opportunities. So, if you're an investor, you want to keep up to date with what's happening in the markets and you want to get the investing masterclass all for free, all you have to do is sign up and I have that link for you down in the description below. The other part

### [5:00](https://www.youtube.com/watch?v=HVaNBchMIZg&t=300s) Segment 2 (05:00 - 10:00)

that the Federal Reserve Bank is going to be paying attention to now is what Kevin Warsh wants to do. I've already made a video talking about this, but Kevin Warsh wants to do a couple things. Number one, he wants to cut interest rates while shrinking the balance sheet. Kevin Warsh wants to cut interest rates as a way to stimulate the economy. Because if interest rates go down, hopefully your mortgage rate will go down, your car loan rate would go down, it's cheaper to borrow money to start a business or grow your business, and more money enters the economy. Now, what that does is that means spending increases, which sounds good. But there's also a consequence. Because if mortgage rates fell to 4% tomorrow, what would happen? Everybody would want to go and buy a house. And if you have this new surge of buyers in the housing market and everybody's trying to buy a house, housing prices are going to go up because you're going to see more bidding wars. Which means higher prices of things. That's how inflation works. When there's more money coming to the economy, the prices of things go up. So, cutting interest rates generally lead to more inflation. And right now we're already seeing an inflation problem. Not just because of what we've been seeing in the economy, but also because of higher oil prices. Oil prices are higher because of the conflict in the Middle East. And higher oil prices make gas more expensive, it makes diesel more expensive, which means shipping costs are groceries and transporting groceries is more expensive. Not to mention the higher oil prices also make fertilizer more expensive, which is why higher oil prices make the price of pretty much everything more expensive. So, now the Federal Reserve Bank is saying, "Uh-oh, we can't cut interest rates, which would stimulate spending, it would boost the economy, way that our economic system works because we are concerned that if we cut interest rates, inflation is going to become a much bigger problem. Inflation is already running hotter than what the Federal Reserve Bank wants. Not to mention to that, it's going to get even higher because of the higher oil prices. We don't know how long the conflict in the Middle East is going to last. If lasts longer than expected, oil prices are going to stay higher for longer, which means inflation is going to continue going higher. So, we, the Federal Reserve Bank, don't want to cut interest rates. " On the flip side, if you raise interest rates to help fight which is what we've seen the Federal Reserve Bank do because if you remember, when the pandemic hit in 2020, interest rates were cut very low. Getting a mortgage was cheap. Then inflation became a problem. And in 2022, to help fight the inflation problem, the Federal Reserve Bank then raised interest rates very aggressively. That brought inflation down lower. It didn't solve the inflation problem, it made the current inflation rate lower than what it was before. So, you have more and more Federal Reserve Bank members saying we need to raise interest rates because inflation is becoming a problem. But the consequence of raising interest rates is it hurts the economy cutting interest rates stimulates the economy. When you raise interest rates, borrowing money becomes more expensive. When you make borrowing money more expensive, less money enters our economy. So, if mortgage rates went up to 12% tomorrow, what's going to happen? Less people are going to go out and buy a house. And if you have less buyers buying houses, sellers are going to be sitting on houses for a whole lot longer. And if sellers are longer, eventually some sellers are going to say, "I need somebody to buy this house, so I have to make this house more attractive. How do I do that? By cutting the house price. " And so that's where raising interest rates can then hurt the economy because spending slows down. And if people are spending less money, that means all their businesses are making less money, which can hurt the economy. Well, this is that dilemma that the Federal Reserve Bank is facing. On one hand, inflation is going up because of all the problems that we've seen during the pandemic, but also higher oil prices. On the other hand, we're seeing pain and concerns in the economy. Part of this is due to AI because we're seeing jobs get partially automated with AI. Part of this is due to companies saying, "We don't know what's going to happen in the economy, so we're going to hire less people. " And so we're seeing concerns in the economy. We're also seeing higher inflation. And some people in the Federal Reserve Bank are saying, "We need to cut interest rates to stimulate the economy. " Others are saying, "We need to raise interest rates to fight inflation. " Well, Kevin Warsh says he wants to cut interest rates, but he says he can balance the cutting of interest rates and the concerns about inflation by doing number two, shrinking the balance sheet, which means removing money out of our economy. What that means is the Federal Reserve

### [10:00](https://www.youtube.com/watch?v=HVaNBchMIZg&t=600s) Segment 3 (10:00 - 15:00)

Bank is called the Federal Reserve Bank, but they're actually not a bank because you and I can't go there to deposit money. They're not a reserve because they're not sitting on any cash reserves, and they're actually not federal. It says so on their website. So, I told you a moment ago that the Federal Reserve Bank lends money to the United States government when the government spends money that they don't have. Well, I just told you that the Federal Reserve Bank is not sitting on any cash reserves. So, if the government wants to borrow a trillion dollars from the Federal Reserve Bank, how is the Fed going to give it to the United States government? The way they do that is by printing money. Well, if you print more money, that can make the inflation problem worse. And now the Federal Reserve Bank is sitting on this huge sum of money that they printed. It's on their balance sheet. They're not actually sitting on it, but on their financial statements, it shows that they printed all this money and lent it to the United States government. And this is where what Kevin Warsh says is if we remove this money from the economy because instead of us holding these loans, we sell these loans, which essentially negate us printing this money, that can balance out the inflation problem. Well, that has consequences. If the Federal Reserve Bank starts selling off their loans, that would mean that now the United States government is going to have less buyers of the loans. Now, this might get a little bit complicated, so let me break this down. Every year, the United States government is spending trillions of dollars that they don't have. Right now, it's about $2 trillion. And so, when the United States government it's thinking about how much money to pay in interest on their loans, it's supply and demand. When there's a lot of people ready and willing to lend money to the United States government, they don't need to offer huge interest rates because everybody wants to lend money to the United States government. But when the United States is trying to borrow money and there's not enough lenders out there, they need to make it more attractive for you to want to lend money to the United States government. The way they do that is by raising interest rates because they'll say, "Hey, if you're not willing to lend us money at 3%, how about we give you a 4% interest rate? " That way more people are interested in lending money to the government. And that's now the concern. If the Federal Reserve Bank starts selling off their loans, that means there's going to be essentially less buyers of the United States debt. And if there's less buyers of this United States debt, that means the United States might be forced to raise interest rates on their loans in order to continue finding enough lenders to lend money to the United States government. And the reason why that matters is because in every economics textbook, it will tell you that lending money to the United States government is a risk-free investment. Because the United States government can just raise their taxes, or they can work with the Fed to print money and pay off their debt. Now, the reason why that matters is because every financial product in the world is in some way, shape, or form priced around United States debt. So, you want to go get a mortgage. What does the bank do to actually decide what today's mortgage rate is? One of the things that they do, which is one of the major factors, is they look at what are their options to lend their money. They can lend their money to you, your broke cousin, Bunty, or they can lend their money to the United States government. Your broke cousin, Bunty, doesn't have a stable income. He doesn't have a good track record as paying of paying back his debt. So, the bank would have to pay or charge Bunty a huge interest rate in order to justify lending money to him. He's probably not even going to qualify. The United States government always pays back their debt. So, the government is going to give or pay the lowest interest rates because it's a safe investment. You are not as safe as the United States government because you could get laid off. You could run out of money. You might forget to make a payment. So, I need to charge you a higher interest rate than the United States government. Now, you can start to see where I'm going with this. If there's not as many buyers of United States loans, they're called United States Treasuries, that means the Treasury rates might go up. If Treasury rates go up, now your bank says, "Oh, we were going to charge you a 6 and 1/2% mortgage, but the United States government is now paying a higher rate of interest, which means I can't afford to only get 6 and 1/2% from you. I need 7 and 1/2%. So, as Treasury yields rise, mortgage rates rise, bank rates rise, credit card rates rise, all interest rates rise because they all revolve around what the Treasury rate is. Now, Kevin Warsh spoke out about this, and he says that I don't believe that this is going to happen. I don't believe

### [15:00](https://www.youtube.com/watch?v=HVaNBchMIZg&t=900s) Segment 4 (15:00 - 20:00)

that interest rates are actually going to rise if I shrink the balance sheet because he says that we will be able to see enough private demand to keep interest rates low. That he believes that if the Federal Reserve Bank starts selling off these Treasuries and they stop buying, meaning lending money to the United States government, other people will pick up the tab. What does that mean? We don't know. Is there going to be some sort of arrangement by the United States government to entice or force people, businesses, countries to lend money to the United States government? We don't know. We've seen it happen in the past. I made a video talking about this. Could it happen again in the future? Again, we don't know, but that's what you might want to start thinking about if Kevin Warsh is saying, "We're going to cut interest rates. It's not going to make inflation worse. And we're going to sell these Treasuries, meaning get them off our balance sheet to reduce the money supply so inflation doesn't become a problem, and we don't think interest rates are going to go up because of it. " That would be great if it works, but we don't know how it's going to work, and that's the part that you want to pay attention to. But beyond that, Kevin Warsh has also talked about different changes he wants to make at the Federal Reserve Bank, which are some pretty big changes. Number one, he wants to redefine inflation. We've seen this happen in the past where the way you measure inflation today is very different than how we used to measure inflation 40 or 50 years ago. They measure housing inflation very differently. And that's part of the reason why the inflation rate that many people feel today, that 3% number, doesn't actually add up to the real inflation that many people feel. Many people are feeling an inflation rate a lot higher than that 3% number partially because the way inflation is defined has changed over the decades. Well, it looks like Kevin Warsh might want to redefine inflation again. Number two, he's talked about ending or reducing the regular press conferences, and also abandoning forward guidance, which is essentially the Federal Reserve Bank's way of kind of hinting at what might be coming in the future. So, we could be seeing some major changes at the Federal Reserve Bank. Kevin Warsh is set to become the chairman at the Federal Reserve Bank on May 15th. This is going to have a big impact on the economy because the United States dollar is the world's reserve currency. It's not just the United States that operates with the United States dollar. The entire world uses the United States dollar to trade, and as a savings tool. That's why this change matters so much because these changes at the Federal Reserve Bank will obviously have an impact on the economy. Changes with interest rates how the Federal Reserve Bank prints money have an impact on the economy. It directly has an impact on the stock market because if it's cheaper to borrow money, that can impact stocks and businesses. If it's more expensive And it also has an impact on your paycheck. Because when inflation happens, more money gets printed, the value of your paycheck goes down. When inflation happens, money gets printed, the value of your savings go down. That's why the average person is poorer today than they were pre-pandemic because pre-pandemic, we didn't have as much inflation that we saw from 2020 to now. All that inflation reduced the value of the dollar, and the average person continues working for a paycheck and saving that money, and your paycheck and savings, unfortunately for most people, have not grown fast enough to keep up with real inflation. Real inflation is the real price growth of things that you buy. That's your housing cost, whether it's your rent or your cost of actual ownership in your house because we know the houses are a lot more expensive today. That can include your property taxes and your insurance. groceries. It can include your car. travel. So, the real inflation that many people feel is a lot higher than the 22% inflation that's reported over the last 6 years. Many people feel like their cost of living has gone up by significantly more than that, but that's what the reported numbers say. And so, this is where you want to pay attention to what's coming. Again, I'll be keeping you posted on Market Brave. That link is free to you down in the description. When you sign up, you're also going to get my investing masterclass. But this is why it's so important for you to understand this. That way, you can stay ahead of the curve and not fall behind because there's going to be a lot of changes coming. May 15th, Kevin Warsh is going to come in. Again, we'll be keeping you posted here. And as always, if you got value out of this video, the best thank you is a referral. So, if you could, please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you. On May 15th, 2026, the Federal Reserve Bank is going to reset, and most people are not going to hear about it until they feel it in their wallet. What's happening on May 15th? The chairman of the Federal Reserve Bank is going to change and he has a new plan on how to shrink the debt crisis here in

### [20:00](https://www.youtube.com/watch?v=HVaNBchMIZg&t=1200s) Segment 5 (20:00 - 20:00)

the United States. The only problem is you cannot fix the debt problem without counting

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*Источник: https://ekstraktznaniy.ru/video/49497*