Total Capitulation: The Fed Just Handed Trump the Biggest Monetary Victory of the Decade
Let’s say it as it is: Donald J. Trump just body-slammed Jerome Powell and the entire unelected central-bank cartel. Quantitative Tightening, that sadistic, economy-draining experiment Powell swore was “temporary” and “necessary”, is officially dead as of December 1, 2025. The same Fed that spent three years bragging about “normalizing” the balance sheet from $9 trillion to $6.6 trillion just admitted defeat and is about to start buying bonds again.
Trump called this exact play years ago. He screamed it on Truth Social, roared it in interviews, and never let up. While Powell played coy with his nerdy “transitory inflation” word-salad, Trump kept swinging: “Rates too high!” “QT is killing growth!” “Fire this clown!” And now? The printers are warming up. Powell is a lame-duck until May 2026, reduced to mumbling about “reserve management” while the market laughs in his face.
This isn’t a “technical adjustment.” This is a white-flag surrender. Trump broke the Fed without firing a shot. Game over.
Timeline of Trump’s Beatdown – Because Facts Are Delicious
- 2018–2020: Trump nominates Powell, then immediately starts roasting him for raising rates. The media calls it “unprecedented interference.” Trump calls it common sense.
- 2022–2024: Powell goes full Paul Volcker cosplay, hikes rates to 5.5 %, and launches the biggest QT in history. Trump warns it will “crash the economy.”
- March 2025: Trump back in the Oval Office, posts at 3 a.m.: “POWELL IS CHOKING AMERICAN MANUFACTURERS WITH HIS STUPID TIGHTENING. CUT RATES NOW!”
- October 29, 2025: Fed announces QT ends in 30 days. Markets explode higher. Bitcoin rips past $98k. Gold tags new all-time highs.
- November 2025: Powell forced to admit on live television that “reserves are approaching levels where further runoff would be imprudent.” Translation: “We’re out of runway, boss.”
Trump didn’t just predict the movie, he wrote the script, directed it, and forced the actors to read his lines.
The Spin vs. The Truth
The corporate media and Powell’s apologists are frantically trying to rebrand this as “routine plumbing maintenance.” Give me a break. When the Fed stops letting $60 billion a month roll off the balance sheet and starts reinvesting maturing securities, and then quietly gears up to buy $20–40 billion in fresh Treasuries every month starting Q1 2026, that’s not plumbing. That’s turning the money hose back on.
They can call it “ample reserves framework” or “technical adjustment” all they want. The market knows what it really is: QE with extra steps. And the market is pricing it exactly like the stimulus Trump has been demanding since 2018.
Powell’s Legacy: A Pile of Ashes and a Lame-Duck Badge
Jerome Powell’s tombstone is already being chiseled:
“Here lies the guy who printed $5 trillion in 2020–21, created 9 % inflation, then spent three years pretending he could put the genie back in the bottle with QT. Got humiliated by Donald Trump. Died a lame duck.”
He still has six months left as chair, but he’s already irrelevant. Markets are trading the post-Powell era right now. Every bond trader on the Street is asking the same question: “Who’s Trump going to pick?” And the answer is coming out of Treasury and Mar-a-Lago is making Wall Street salivate.
The Short List of Powell Replacements – All Trump Loyalists
- Scott Bessent – Current Treasury Secretary, macro legend, already whispering in Trump’s ear daily.
- Kevin Warsh – The guy who warned about QE addiction in 2010 and still wants rates low enough to juice growth.
- Kevin Hassett – Trump’s former CEA chair who helped craft the 2017 tax cuts and thinks 1 % rates are “normal.”
- Stephen Miran – Already on the Board, just dissented for a 50 bps cut like a boss.
Any one of these names means pedal-to-the-metal liquidity in 2026 and beyond. Powell’s era of pretending the Fed is “independent” is finished.
The Real Reason They Caved: Trump’s Tariffs + Empty Reserves = Checkmate
Here’s the dirty little secret the Fed doesn’t want you to know: They didn’t end QT because they suddenly grew a heart. They ended it because reserves were about to go negative in key funding markets. Repo rates were already spiking again, just like 2019, and Trump’s tariffs were about to add another shock to the system.
Trump knew this. He saw the plumbing cracking and kept turning the heat up on Powell publicly while his people worked the back channels. The Fed blinked first. They always do when a real alpha is in the room.
What This Actually Means for Your Wallet
- Stocks – The melt-up is back on. S&P 6,000 by spring is the base case.
- Crypto – Bitcoin $150k, Ethereum $10k, and every shitcoin you hate will 10× because liquidity is the ultimate steroid.
- Gold & Silver – The only assets that hedge the inevitable inflation wave when this money tsunami hits Main Street.
- Real Estate – Mortgage rates heading back to the 5 s, maybe 4 s if Trump gets his way.
- Your 401k – If you’re still in cash, you’re about to watch the train leave the station without you.
The Left’s Meltdown Is the Cherry on Top
Watch MSNBC and CNBC cope and seethe for the next six months. They’ll call it “dangerous,” “reckless,” “the end of Fed independence.” Translation: “How dare the American people get a President who actually fights for them instead of Goldman Sachs.”
Let them cry. The same people who told you inflation was transitory, masks worked, and January 6 was an “insurrection” are now telling you Trump “threatens democracy” by… getting the Fed to stop draining money from the economy. Spare me.
Final Scoreboard
- Trump’s predictions: 100 % correct
- Powell’s credibility: Zero
- Money printer status: BRRRRRRRR
Donald Trump didn’t just win a policy debate. He walked into the most powerful central bank on Earth, stared down the ivory-tower PhDs, and made them fold like a cheap lawn chair.
This is what winning looks like.
Enjoy the ride, patriots. The golden age isn’t coming, it’s already here.
And Jerome? Pack your bags. Your replacement is already measuring the curtains.
MAGA.
