The Fed Can’t Stop Now — Massive Money Printing Is Next

Summary

The video discusses the Federal Reserve's likely shift toward cutting interest rates and resuming money printing, or quantitative easing, in 2026. Jerome Powell's recent statements suggest that current economic conditions haven’t changed much, supporting projected rate cuts in October and December 2025. The speaker explains how these moves will devalue the dollar, drive up asset prices like gold, and exacerbate wealth inequality, as those closest to monetary interventions benefit most. While Powell avoids commenting on gold directly, the trend points to continued inflation and a historic era of aggressive central bank action, reshaping markets and economic dynamics for years to come.

Takeaways

• 😀 The Federal Reserve is likely to cut interest rates at their upcoming meetings in October and December, based on their current outlook on inflation and employment.
• 😀 The probability of an interest rate cut in October is 97.8%, and in December, it stands at 92.8%, signaling an impending shift towards easier monetary policy.
• 😀 With lower interest rates, the stock market and precious metals, like gold, are expected to benefit from the influx of easy money.
• 😀 The Federal Reserve's money printing, also known as quantitative easing (QE), will likely resume in 2026, following interest rate cuts and the cessation of quantitative tightening.
• 😀 Quantitative easing began after the 2008 financial crisis, with the Fed printing around $4 trillion, and another $5 trillion during the pandemic, to prevent economic collapse.
• 😀 The Federal Reserve has reduced its balance sheet by $2.2 trillion since June 2022, but plans to halt balance sheet runoff soon, signaling a potential end to quantitative tightening.
• 😀 The Federal Reserve’s policy of printing money increases inflation, leading to a devaluation of the dollar and a rise in the price of gold and other assets.
• 😀 Gold has increased in value by 60% year-to-date, demonstrating its role as an inflation hedge amidst rising monetary supply.
• 😀 Jerome Powell, the Fed Chair, avoids commenting on asset prices like gold or Bitcoin directly, even though their rise reflects inflation concerns.
• 😀 The current economic environment, marked by inflation and a widening wealth gap, is seen as a historical moment, where central bankers are said to have taken control, leading to potential long-term consequences for the country.

Q & A

What did Jerome Powell say about the Federal Reserve's outlook on employment and inflation?

Jerome Powell indicated that the Federal Reserve's outlook on employment and inflation has not changed since their September meeting. This suggests that their policy trajectory remains the same.

What interest rate cuts are expected by the Federal Reserve in the coming months?

The Federal Reserve is expected to cut interest rates by 0.25% on October 29, 2025, and by another 0.25% in December, bringing the rate down to approximately 3.75%.

What is the probability of the Federal Reserve cutting interest rates as predicted?

According to the CME FedWatch tool, there's a 97.8% probability that the Federal Reserve will cut rates in October and a 92.8% probability for the December meeting.

What is the significance of quantitative easing (QE) and quantitative tightening (QT)?

Quantitative easing (QE) refers to money printing by the Federal Reserve, while quantitative tightening (QT) is the process of removing money from the financial system. These measures directly affect the money supply and, consequently, inflation.

How much did the Federal Reserve print during the Great Financial Crisis (GFC) and the pandemic?

To prevent economic collapse during the GFC, the Fed printed approximately $4 trillion. During the pandemic, it printed another $5 trillion to stabilize the economy.

What did Jerome Powell say about the potential end of quantitative tightening?

Jerome Powell suggested that the Federal Reserve might end its quantitative tightening (QT) soon, as the balance sheet reduction has reached a level that could be considered 'ample reserves.'

What does the speaker predict for the Federal Reserve’s actions in 2026?

The speaker predicts that after interest rate cuts and an end to quantitative tightening, the Federal Reserve will return to quantitative easing (money printing) in 2026 to address economic challenges.

Why does the speaker believe gold is a strong hedge against inflation?

Gold is seen as a hedge against inflation because, unlike fiat currency, it cannot be printed at will. As the Federal Reserve prints more money, the value of gold tends to rise, making it a safe haven during inflationary periods.

What has been the performance of gold year-to-date according to the script?

Gold has risen by approximately 60% year-to-date, reflecting its role as an inflation hedge amid concerns over fiat currency devaluation.

What did Jerome Powell’s response to questions about rising gold prices suggest?

When asked about the rise in gold prices, Powell refused to comment directly, implying that the Federal Reserve does not actively consider asset prices like gold when making policy decisions. This could also suggest an understanding that gold’s rise reflects inflation expectations.