---
title: 'Trump *JUST* Humiliated Himself AFTER Fed Rate Hike.'
source: 'https://youtube.com/watch?v=eUS1QM-w9-Q'
video_id: 'eUS1QM-w9-Q'
date: 2026-09-17
duration_sec: 846
channel: 'Meet Kevin'
---

# Trump *JUST* Humiliated Himself AFTER Fed Rate Hike.

> Source: [Trump *JUST* Humiliated Himself AFTER Fed Rate Hike.](https://youtube.com/watch?v=eUS1QM-w9-Q)

## Summary

The video analyzes President Trump's response to the Federal Reserve's interest rate hike, where he demanded rates be cut to 1%. The host, Meet Kevin, systematically dismantles the president's claims about U.S. credit ratings and the trade deficit, using historical data and economic reasoning. The video aims to provide viewers with a clearer understanding of the economy beyond political rhetoric.

### Key Points

- **U.S. Credit Rating Is Not the Best** [00:31] — Trump claims the U.S. has the best credit in the world, but the U.S. has been downgraded three times since 2011 by S&P, Fitch, and Moody's. Nine countries hold unanimous AAA ratings, including Germany, Switzerland, and Singapore.
- **1% Rates Signal Recession, Not Boom** [02:17] — 1% interest rates are historically used during recessions, not booms. Examples include the dot-com bust, 2008 financial crisis, and COVID-19 pandemic.
- **Rate Cuts Could Be Inflationary** [03:45] — Cutting rates during a boom could pull forward demand and increase inflation, as it signals that policymakers don't care about inflation.
- **Trade Deficit Is Not a Loss** [06:34] — The trade deficit is not a loss; it's an exchange of money for goods. Stopping trade with deficit countries would destroy the economy, as we rely on imports for food, electronics, and pharmaceuticals.
- **Trade Deficit Funds U.S. Debt** [11:35] — Trade deficits lead to foreign countries holding dollars, which they use to buy U.S. assets like Treasury bonds, helping to fund the economy.

### Conclusion

The video systematically dismantles the president's economic claims, showing that 1% rates are a recessionary tool and that the trade deficit is a feature of the dollar system, not a loss. The final takeaway is that political rhetoric often ignores the data, and investors should focus on the fundamentals.

## Transcript

It's official, Donald Trump has just responded to the Federal Reserve raising interest rates, and to my surprise, he did not blame Iran. Instead, this is what he wrote, and what we're going to do is not only are we going to break down what Donald Trump said,
but I'm going to show you, point by point, why Donald Trump is, unfortunately, completely wrong. Wrong! And it's not to bag on Donald Trump, it's to give you more perspective about what's actually happening in the economy.
First things first, interest rates in the United States should be 1% or less because we have the best credit in the world by far.
Okay, let's start right there. Best credit in the world by far? Not anymore, buddy, not anymore. we lost all three of our AAA ratings.
The S&P caught us to AA+, in August of 2011. Fitch caught us to AA- in August of 2023. And Moody's caught us to AA- in May of 2025 because all of them say our debt is unsustainable.
Instead, countries that have unanimous AAA ratings, which mean all nine of them have way better credit ratings than us, are Deutschland, Switzerland, Australia, Singapore, the Netherlands, Denmark, Norway, Sweden, and Luxembourg.
So, no, we've actually gotten downgraded three times since 2011. Likely has increased our borrowing costs. So, we're already starting with breaking this apart by indicating, no, we don't actually have the best credit in the world.
And then he says, our country is booming with new investment. And because our country is booming with new investment, interest rates should be 1%. Hmm. That's a really interesting thesis because those of us who know what 1% interest rates would mean,
they would typically mean we're in a recession, and that's not congruent with our economy is booming and we should cut rates. In fact, we would generally consider 1% emergency medicine.
Basically, if we look at history, there are three times we had 1% interest rates. Number one was recently, after COVID, we cut to zero. Before that was the 2008 global financial crisis.
And then right before that was the dot-com bubble bust. Those are the last times we cut to 1%. All of them came after some form of global panic.
crushing valuations during the dot-com bubble. In fact, I have this dot-com bubble sheet right here where the NASDAQ peak to trough was down 83%.
This is from the time we were talking about how real estate during 1999 and 2004 actually returned positive yields while the NASDAQ was down 83%. So it's actually kind of interesting,
but it just shows you the value of diversification. I'm not trying to show real estate which happens to be a consequence of that data. So that's odd. We wouldn't typically do that. So this idea of booming and we cut to 1 that doesn really make sense because if we cut rates and then we stimulate the economy even more we could potentially cause even more inflation because we are now indicating to buyers and sellers in the economy that Donald Trump and the Federal Reserve care zero about inflation
And just go out there and spend it all now, which effectively increases demand today rather than tomorrow. Pulling forward demand could be inflationary, especially if our economy can't keep up with that.
So that's odd. That doesn't really actually work. So, so far, he's wrong about our credit rating. He's wrong about why we would go to a 1% interest rate. So we're not at a very good track record here.
And we already broke down how I thought the Federal Reserve's hype today was a credibility builder. This is essentially because Kevin Warsh made some oopsie-doopsies in his first meeting,
where he talked about only wanting to focus on inflation to the left of the decimal, and he kind of had to find his footing a little bit today. He put the pants on and he showed us that he actually had some balls,
which I think is a cool, impressive thing. And it's exactly what we expected, which is why we have a coupon code called Warsh's Balls, which you can use on the Alpha membership over at neatreinvest.com.
Alpha membership also comes with an awesome bonus that you should sign up for, which is a free trial offer to the Reinvest Terminal Well, that does launch in November, though, so just keep that in mind. Okay, let's go back to Donald Trump here.
Donald Trump here suggests that our country is booming with new investment. If we stop trading with every country we have a deficit with, which is most of them, we would make at least $1.5 trillion a year.
Which is interesting because if we stop trading with other countries, we would probably just destroy our very economy. Let's just pick five countries for a moment that we actually have a deficit with.
Let's start with Mexico. Mexico is a great example. Why? Because we get food that we can't grow in February. We get car parts that we can't manufacture from Mexico.
We also get electronics and appliances like washers, dryers, refrigerators. You ever wonder why a dishwasher is like $400? It's because we can get them cheaper from Mexico. a lot cheaper. Americans made it
that $400 dishwasher might be $1,200 and that $1,000 dishwasher might be $3,000. I don't expect to let you go by those numbers. But that's the point. That's why we trade with Mexico. Because we can get things manufactured very inexpensively and they're things
that every American really needs. Tomatoes, berries, peppers can't grow in the U.S. Kind of need Mexico for them. Across car parts, many of them manufactured in Mexico because of the USMCA
trade deal, which of course is now in question with Donald Trump, but those are real problems. So of course we're importing more from Mexico. One thing to know about the trade deficit is Donald Trump suggests that trade deficits are a loss. So I raise you a Costco example.
Let's say I go buy $500 worth of stuff at Costco. I walk out with $500 in product. I
technically now mean, I technically now have a loss of $500. But in fairness, while I have a paper $500 deficit I did just walk out of their store with in goods So maybe because we have seven children and we personally shop at Costco a lot it probably more like thousands of dollars But anyway maybe
because we spend so much money at Costco, and I mean, I suppose maybe, maybe the Costco executive team uses Coupon Code Warsal and joins us over at Meet Renewal, it's possible we're on an equivalent basis,
but I'm going to go ahead and assume that they haven't bought that many courses to justify how much money we've spent at Costco. So maybe we should just stop buying at Costco because we have a trade deficit with Costco. Except then we wouldn't get cheap food
or free samples. I like the free samples. Do another example. Mexico. How about Vietnam? Maybe we can help Nike
and their margins and their lack of pricing power by saying that, hey, from now on, all your sneakers and apparel You should make those in the United States. Furniture? Yeah, I'll get that in the U.S. as well.
iPhones? Nah, we don't want Foxconn, China, or India. Let's make those in the United States as well. Eh, that's not ideal for crushing the trade deficit, and if we just stop trading with both these countries,
I guess we're not getting sneakers, apparel, or electronics from Vietnam, appliances, or vegetables, or food from Mexico. What about Ireland? Oh, right. Most weight loss drugs and cancer drugs are manufactured in Ireland.
Why? I don't know. Some corporate tax loopholes. You're talking about closing those. Can you just stop trading with Ireland? Oh, that's not good. Weight loss drugs, cancer drugs, Botox.
Ugh, that's really weak, PP. Viagra. Viagra. You can't make this up. Viagra is manufactured in Cork, Ireland. pork?
You're gonna pork it? You're gonna put pork in it? Viagra? I guess we can just stop trading with that we don't need Viagra. Let's turn on
CNBC. Okay, don't go there. Maybe we should just kill the very thing that's booming at least the broader economy. If you look at Atlanta at the Atlanta Fed real GDP
right now because of the retail sales that have been that beat expectations across the board today, we ended up at 5.1% on the current estimate for third quarter real GDP. Maybe we should just stop trading with Taiwan, who's manufacturing all of our advanced chips,
or maybe like 90% of the world's advanced chips. In fairness, we're trying to get Intel to manufacture those here, we're trying to get Taiwan Semiconductor to manufacture those here, which they are in Arizona, and we're also trying to get Elon, who's got an R&D
fab in Texas to build more chips, but when you kind of look at it this way, if we just cut off Taiwan right now, we'd immediately be cutting NVIDIA off of the very supply that they need
to provide agentic artificial intelligence for anthropic and open AI, which then of course would stop the circular spending and basically spiral our economy into an immediate recession. I'm not suggesting
that this bubble is sustainable. I think it's going to last longer than we think, which is a good thing, we want the boom to keep going, but you would make it come to an end really quickly if you just stopped trading with Taiwan.
I not exactly sure how driving us into a recession would help Donald Trump case I suppose the one thing it would do would be get us lower interest rates It would get us that very quickly Maybe we should
just completely stop trading with Canada because, after all, almost the entire trade deficit we have with Canada is importing the heavy crude that Canada has, that we refine in Texas. So, yeah,
let's just stop importing oil when gas prices and diesel prices are at essentially records, and we'll just make the energy crisis even worse. I'm sure all of these things won't actually drive us into a recession.
So, Donald Trump, when you say that interest rates in the U.S. should be 1%, why? When you say that we have the best credit in the world by far, nine countries smoke us.
When you say our country is booming with new investment, you're right. And you know why our country is booming with investment? Well, in part because of our trade deficit.
When we have a trade deficit with other countries, when we buy their goods, guess what they're holding? Dollars. They're holding dollars. And because we're the world reserve currency of, well, frankly, the world, the dollar is,
what do people do? They buy our assets, like our treasury bonds, which is unbelievable because we are so upside down on our debt. but we are like the best of the worst. If our economy tanks, maybe they'll just stop buying our crop
and stop trading with us, and then maybe they won't hold our dollars, and you'll have 0% interest rates, but nobody's going to want to borrow it anyway because they won't even want the dollars, because you'll be in a big fat recession.
Sometimes I feel like maybe Donald Trump should build into truth social like a, hey, fact check me before I post this, AI. Donald Trump says, If we stop trading with every country we have a deficit with, which is most of them,
we would make at least $1.5 trillion a year. And then we would probably kill about $5 to $10 trillion of our economy. Great. We are carrying almost every country in the world,
because a deficit is nothing more than a fancy word for loss. Right. When I buy $500 worth of food at Costco, I have lost $500. Disappeared.
went poof-de-doof, I got nothing in return. We are carrying almost every country in the world, and that cannot go on any longer. Lower interest rates for the United States of America, and fast. President Donald J. Trump.
Well, I don't think I have much more to say than that did not get me bingo. I really wanted bingo, okay? I had a bingo board cooking
for the Federal Reserve. And there was one freaking thing that we were still missing. It's right here on the top left side, wherever this loads for us. There we go. The one thing I needed to get bingo.
The one thing I needed was Trump blaming Iran. No. Instead, he went back to blaming the trade deficit. So thanks, Trump. I'm secretly just pissed because I didn't get bingo now because of you.
I don't know how to advertise these things that you told us here. I feel like nobody else knows about this. Well, let's try a little advertising and see how it goes. Congratulations, man. You have done so much. People love you. People look up to you. Kevin Pass left there. Bye. Nice to run with.
And you too, Buck. Meet Kevin. Always great to get your take.