
2025 7-010 Matters of Democracy Discontented Base, OBBB + (part2?), The Fed Reserve
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Trump's Discontented Base and Intra-Party Friction: Donald Trump is facing unusual pushback from elements of his MAGA base and significant dismay from Congressional Republicans on various policy fronts. Immigration/Emigration, Jeffrey Epstein Conspiracy Theory, Ukraine Policy, Tariff Policies.
Unpopularity of the "Megabill" (BBB): The recently signed Budget Busting Bill (BBB) remains broadly unpopular, posing a potential liability for the incumbent party.
Republican Drive for a Second Reconciliation Bill: Despite the first megabill's unpopularity and difficult passage, some Republicans, notably Sen. Mike Crapo and Sen. Ron Johnson (R-WI), advocate for another reconciliation bill.
Trump's Push to Fire Jerome Powell: Donald Trump is "constantly criticizing Federal Reserve Chairman Jerome Powell," demanding lower interest rates or his resignation, primarily driven by his real estate background and concerns about government debt. Motivation: Real Estate Interests: Trump's preference for low interest rates stems from his "background as a real estate developer," as real estate "lives or dies by interest rates." His sons are still running his company and doing projects. Government Debt: According to Lael Brainard, a former Fed governor, Trump's "real goal" is "hiding the effect of his BBB (Budget Busting Bill)" by reducing the "interest that the government will have to pay on the new $4 trillion in debt." A 3% interest rate cut (from 4% to 1%) would save "the government $1.2 trillion over 10 years."