Episode Summary: "Trump Ramps Up Threats to Remove Powell"

Podcast Title: Tangle
Host: Isaac Saul
Release Date: July 16, 2025

Introduction

In this episode of Tangle, host Isaac Saul examines the escalating tensions between former President Donald Trump and Federal Reserve Chair Jerome Powell. The discussion encompasses Trump's mounting threats to oust Powell, the latest inflation data, and the broader implications for U.S. economic policy. Additionally, the episode addresses a listener's question about cloud seeding practices in Texas, providing clarity amidst rising speculations.

Main Story: Trump, Inflation, and Jerome Powell

Trump's Political Maneuvers and Economic Policies

Isaac Saul opens the episode by outlining key topics: Trump's support for a redistricting plan in Texas aimed at securing Republican control in the 2026 midterms, the Pentagon's decision to end the deployment of 2,000 National Guard troops in Los Angeles following protests over deportations, and Trump's recent trade initiatives with Indonesia and Mexico.

Trump's Critique of Jerome Powell

Former President Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, deeming him "too late" in addressing inflation issues. In a statement at [04:14], Trump asserts:

"He's doing a very bad job. He's way late. That's why I call him too late. Jerome Powell is too late. He's way late. Interest rates should be coming down."

Isaac Saul echoes this sentiment, emphasizing Trump's ongoing pressure to remove Powell amidst economic uncertainties.

Economic Indicators and CPI Report

Will, the podcast's co-host, delves into the latest Consumer Price Index (CPI) report released by the Bureau of Labor Statistics, indicating a 2.7% increase in June—aligning with economists' expectations but raising concerns about sustained inflation. The report highlights:

• Core Inflation: Rose by 0.2% in June.
• Energy Prices: Increased by 0.9%.
• Food Prices: Rose by 0.3%.
• Decreasing Categories: New vehicles and used cars/trucks saw declines of 0.3% and 0.7% respectively.

Trump has portrayed these figures positively on Truth Social, advocating for a 3-point reduction in interest rates and further criticizing Powell's reluctance to adjust monetary policy.

Federal Reserve's Independence and Renovations

The episode touches on the Supreme Court's recent affirmation of the Fed's independence, limiting the President's authority to dismiss Powell. Additionally, Senate Republicans have scrutinized the Fed's $2.4 billion renovation of its Washington, D.C. headquarters, with Senator Tim Scott labeling the expenditures as "luxury upgrades."

Perspectives from the Left and the Right

Left-Leaning Views:

• Washington Post: Warns that firing Powell could erode investor confidence, destabilize bond markets, and devalue the dollar.

• Jonathan Levin (Bloomberg): Praises Powell's cautious stance, stating it aligns with current economic needs and advises waiting for more data before making policy changes.

• Rebecca Patterson (New York Times): Highlights the dangers of politicizing the Federal Reserve by citing examples from Hungary and Turkey, where central bank independence was compromised, leading to economic instability.

Right-Leaning Views:

• Oren Cass (Understanding America): Argues that tariffs do not constitute traditional inflation and criticizes Powell's resistance to cutting rates, suggesting that such policies hinder economic growth.

• Gerard Baker (Wall Street Journal): Predicts that Trump's attempts to control the Fed may backfire, leading to tighter monetary conditions and further economic challenges.

• Peter Navarro (Washington Times): Claims Powell's policies impose significant economic costs, including increased debt service, and calls for the Fed Board of Governors to intervene.

Isaac Saul’s Analysis

Isaac Saul provides a balanced perspective, acknowledging the strengths of the U.S. economy—low unemployment rates, robust job growth, and thriving stock markets—while also recognizing the emerging inflationary pressures attributed to Trump's tariff policies.

Key Points:

• Economic Strengths: Despite some price increases, the economy exhibits resilience with unemployment rates comparable to historical lows.

• Impact of Tariffs: Cites economist Parker Ross, noting a 1% increase in household furnishings prices—the largest since the 2022 pandemic peak—attributable to tariffs.

• Support for Powell: Advocates for Powell's maintenance of interest rates, arguing that politicizing the Fed could lead to economic instability. Isaac critiques the focus on the Fed's renovation costs as a distraction from more pressing economic issues.

Notable Quote:

"Trump should not fire him. Supplanting Powell with a genuinely political appointee would be a disaster." [17:51]

Listener Question: Cloud Seeding in Texas

A listener from Texas inquires about the claims linking cloud seeding to increased rainfall and severe storms.

Isaac’s Response:

• Clarification: Cloud seeding is limited to increasing precipitation in specific regions and cannot induce large-scale storms or flooding.

• Operational Limits: Texas utilizes cloud seeding primarily in western areas to prevent hailstorms and modestly increase rainfall, but these operations were halted before recent storms.

• Expert Insight: Augustus Dirico, CEO of Rainmaker, explains that the volume of precipitation from cloud seeding is negligible compared to natural storm systems.

Under the Radar: Gender Divide in Workforce Return

Will highlights a growing gender disparity in the post-pandemic return to in-person work:

• Men's Return: Increasingly resuming office roles.

• Women's Participation: Remains largely unchanged, influenced by remote work's flexibility benefiting those balancing careers with household responsibilities.

• Economic Implications: Remote work may limit career advancement opportunities for women, potentially exacerbating existing gender disparities.

Statistics and Quick Facts

• Jerome Powell's Tenure: Approximately 7 years as Fed Chair, compared to William McChesney Martin Jr.'s 19 years—the longest in Fed history.

• CPI Changes: June saw a 2.7% annual increase, matching economic forecasts.

• Household Influence: 2.4% annual rise in grocery prices, 0.8% in energy, and 3.8% in housing as of June.

Have a Nice Day: Paris Seine Reopens to Swimmers

Concluding on a positive note, the episode narrates Paris's successful efforts to clean the Seine River, culminating in its reopening for public swimming after a century. The $1.4 billion investment in cleanup has not only revitalized the river but also set a precedent for urban environmental restoration across Europe.

Conclusion

This episode of Tangle offers a comprehensive analysis of the fraught relationship between Donald Trump and Jerome Powell, set against the backdrop of current economic indicators and political maneuvers. By presenting diverse perspectives and expert insights, Isaac Saul underscores the critical importance of maintaining Federal Reserve independence to ensure long-term economic stability.

Notable Quotes:

• Donald Trump [04:14]:

  "He's doing a very bad job. He's way late. That's why I call him too late. Jerome Powell is too late. He's way late. Interest rates should be coming down."

• Oren Cass [Within Right-Leaning Views]:

  "Tariffs are not inflationary... Is not inflation of the type cognizable for monetary policy?"

• Isaac Saul [17:51]:

  "Trump should not fire him. Supplanting Powell with a genuinely political appointee would be a disaster."

For more insights and detailed discussions, visit Tangle's website.