President Donald Trump's frustration with Federal Reserve Chair Jerome Powell has been ongoing and completely justifiable. He's taken to calling Powell "Too Late" because of his reluctance to cut interest rates.
But, now, finally, Powell has dropped some broad hints that a rate cut may be on the horizon, as my colleague Streiff reported earlier.
READ MORE: Fed Chairman Hints at Coming Interest Rate Cut and Swears He's Not Doing It Because of Trump
Powell said at the annual conference hosted by the Reserve Bank of Kansas City in Jackson Hole, Wyoming, “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Powell added that “the balance of risks appear to be shifting” between the Fed’s dual mandate of full employment and stable prices. He cited “sweeping changes” in tax, trade and immigration policies.
The reaction from the stock market was great, as the Dow Jones soared to its highest point ever.
The Dow Jones Industrial Average rallied to an all-time high Friday after Federal Reserve Chair Jerome Powell signaled the central bank could begin easing monetary policy next month.
The Dow Jones Industrial Average climbed higher by 918 points, or 2%, reaching a fresh high. The S&P 500 climbed 1.6%, while the Nasdaq Composite gained 2%.
Shares of megacap technology stocks soared on Powell’s comments. Nvidia added 1.3%, while Meta, Alphabet and Amazon each climbed more than 2%. Tesla shares jumped about 5%.
But that wasn't the only good news that might be setting the market off.
President Donald Trump's increased tariffs on U.S. imports from foreign countries could reduce the national deficit by $4 trillion over the next decade, the Congressional Budget Office estimated on Friday.If Trump's global tariff hikes continue, increased revenue could shrink primary deficits by $3.3 trillion and cut federal interest payments by $0.7 trillion over the next decade, CBO, Congress’ nonpartisan analyst, said.
That's astonishing, and President Donald Trump made sure he trumpeted it during his remarks from the White House on Friday.
.@POTUS: I was very happy to see that even the left-wing CBO admits tariffs will reduce the deficit by $4 TRILLION over the next decade. pic.twitter.com/L7J8lxVRe0
— Rapid Response 47 (@RapidResponse47) August 22, 2025
Trump noted how the stock market had gone up as well.
It shows once again, with that Congressional Budget Office (CBO) estimate, that Trump was right about the tariffs reducing the deficit, assuming the tariffs hold in place. The CBO number is probably a low-ball estimate, too.
So what will the Democrats say now that even the CBO concedes this? Watch the scrambling that will ensue. But if they had won, none of this would have been possible, and we'd be in economic doldrums.
READ MORE: Mic Drop: Scott Bessent Delivers Glorious Four-Word Response to Reporter When Asked About Investing
That's looking like a lot of winning, with even more on the horizon when the economy gets going even more.
https://t.co/K5tzamn659 pic.twitter.com/ktqN4GPCch
— Rep. Mike Rulli (@RepMichaelRulli) August 22, 2025
Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.
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