Fed Follies: Trump, Tariffs, and the Great Greenland Grab!

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Oh, the Fed! Will they or won’t they? Spoiler alert: they won’t. Markets are holding their breath like a clown at a mime convention, expecting the Federal Reserve to keep interest rates steady at Wednesday’s FOMC meeting. In a chat with BeInCrypto, former Reagan advisor Steve Hanke nodded along, blaming that pesky inflation genie that refuses to go back in its bottle.

Hanke, with a wink and a nudge, pointed out that policy uncertainty has turned the US economy into a three-ring circus. It’s not just monetary policy anymore-oh no! It’s trade, currency markets, and global confidence taking a nosedive faster than a Brooks comedy at a drama festival.

https://www.youtube.com/watch?v=ECbh5U5igHY

Fed Stands Tall, Trump Throws a Fit

Everyone’s betting the Fed will keep rates steady, despite Trump’s tantrums. The former president has been yelling at the Fed like a director on a chaotic set, demanding rate cuts. But the Fed? They’re not budging. Not even a little.

The Trump administration’s pushback has been louder than a Brooks musical number, but the Fed’s resolve is stronger than a Brooks punchline.

– BeInCrypto (@beincrypto) January 27, 2026

Hanke, channeling his inner Brooks, sided with the Fed, quipping that inflation is the economy’s version of a bad sequel-it just keeps coming back.

“Inflation is like a Brooks movie-you think it’s over, but then there’s another one. It’s come down, but it’s stuck like a bad joke. And guess what? It’s coming back, thanks to monetary policy that’s looser than a Brooks script,” Hanke told BeInCrypto, adding, “The White House is pushing harder than a producer on opening night.”

Meanwhile, the DOJ decided to spice things up by launching a criminal probe into Fed Chair Jerome Powell. Because what’s a good economic drama without a criminal subplot? This comes hot on the heels of another probe into Fed governor Lisa Cook for mortgage fraud. Talk about a plot twist!

Hanke chuckled, saying the pressure is just making the Fed dig in deeper. “They’re not letting Trump push them around,” he said, “It’s like a Brooks character standing up to the villain-only this time, the villain is wearing a red tie.”

“With this threat of a criminal suit against Chairman Powell, the Fed establishment decided to channel their inner Brooks hero and not back down,” he added.

And it’s not just monetary policy. The resistance is spreading like a Brooks rumor, reaching every corner of the administration’s economic agenda.

Global Trade: The Comedy of Errors

Trump’s second term has been a trade policy rollercoaster, with tariffs flying around like confetti at a Brooks premiere. He’s threatened trading partners left and right, using tariffs as leverage like a comedian uses props.

But the world is fighting back. Take the Greenland fiasco, for example. Trump threatened tariffs on eight European countries unless they agreed to sell Greenland. The EU’s response? A swift “Nein, merci, and no.” Within hours, the tariff threat was withdrawn faster than a bad joke at a stand-up show.

Other countries are forming trade alliances like it’s a Brooks ensemble cast. Canada is cozying up to China and India, while the EU and India are striking their own deals. It’s a global trade party, and the US is the odd one out.

KARL: Trump gave Canada a green light for a deal with China, then 9 days later he’s saying, ‘That’s it. 100% tariffs.’

BESSENT: Well, no. There’s a possibility of 100% tariffs if they do a free trade deal.

– Aaron Rupar (@atrupar) January 25, 2026

Hanke couldn’t resist a jab, pointing out the irony: “The US, the home of free markets, is now protectionist. Meanwhile, China, the communist giant, is embracing free trade. And India? They’re liberalizing faster than a Brooks rewrite.”

“It’s like a Brooks comedy-everyone’s switching roles, and the US is left holding the punchline,” Hanke quipped.

As countries resist tariff pressure, the dollar is feeling the heat. While Hanke says concerns about the dollar’s weakness are overblown, he warns that continued trade shenanigans could erode confidence faster than a Brooks flop.

Precious metals are rallying, suggesting markets are hedging their bets. Gold, silver, and platinum are the new stars of the economic show, while the dollar watches from the sidelines like a forgotten extra.

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2026-01-28 04:21