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You’ve probably heard the word "tariff" tossed around on the news again lately. Trump’s back on the tariff train. But why does it matter to YOU?
Here’s what’s really going on 🧵👇
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Right now, the U.S. owes over $36 trillion in debt.
That’s a mountain so big, it’s putting pressure on everything from your mortgage to your job.
And $7 trillion of it needs to be rolled over — within the next 3 months.
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The U.S. needs new buyers for its debt, but guess what?
China and Japan, our biggest lenders, are stepping back.
They’re either facing their own economic mess or don’t want to be used in a political tug-of-war.
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So the U.S. is in a tough spot:
We need cash to keep the lights on, but no one’s lining up to lend.
And if they do, they want higher interest rates. That means borrowing gets more expensive — for the gov't and for YOU.
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Enter Trump’s plan:
He wants the Fed to cut interest rates — fast.
Why?
→ To make borrowing cheaper
→ To boost the economy
→ To help refinance U.S. debt at better terms
→ And yes, to win 2024
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But the Fed’s resisting.
Why?
Because inflation is still hot.
Cutting rates too soon could backfire — and hurt the dollar’s credibility globally.
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So Trump’s applying pressure:
He’s threatening tariffs (especially on China) to make a political point, push trade leverage, and force a faster rate cut by destabilizing global trade.
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But here’s the gamble:
Tariffs raise prices on goods — which could make inflation worse.
It’s like throwing gas on a fire while telling the fire department to use less water.
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And for regular Americans?
→ Groceries could get more expensive
→ Your credit card rates might stay high
→ Car loans, mortgages, small biz loans? Same story.
All of it gets tighter.
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So why the pause in tariffs now?
To calm the markets — give Wall Street a breather — and make it look like the White House is “working on it.”
But it’s just a 90-day Band-Aid on a $36T problem.
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Bottom line?
Trump’s betting that pressure + tariffs = lower rates
But if the bond market doesn’t buy it, we could see:
→ Higher interest rates
→ Slower economy
→ And a tougher future for average folks
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So yeah — tariffs, the Fed, and interest rates might seem far-off and wonky.
But they touch every part of your life.
This isn’t just politics — it’s about how much you pay for everything, and whether the system holds.
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If you’re working, saving, paying rent, or just trying to get by, this stuff matters.
Don’t tune it out.
We’re all riding this economic rollercoaster together.
— END 🧵
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