STEVE BANNON (HOST): David Malpass, just continue on what you’re saying because this is the beating heart. We talk about midterms, ’28. I tell people don’t worry about the economics right now and the bets that we’ve made given the structure of the economy. So continue on, sir.
DAVID MALPASS (GUEST): President Trump has put so much energy into a supply-side reform of the economy that’s supposed to help people and small businesses. He’s deregulating the economy.
The Fed on Thursday reappointed itself, by its own authority, 11 of the 12 regional presidents of the Fed banks across the country, and also 12 of the 12 first vice presidents. So you’ve got the top two across the country locked in for another five years. They’re Trump-proofing the Federal Reserve.
That means you’re going to end up with rates higher and the dollar not as defended as it should be. The Fed’s models don’t defend the dollar. That means the U.S. is at risk, at risk to foreign competition.
I think the president should forcefully be asking people, how are we going to have massive reforms? He spent time talking about the Federal Reserve buildings, the $3 billion being constructed in Washington, D.C., but there hasn’t been follow-through to say changes at the Fed need to promote growth.
STEVE BANNON (HOST): What, just give me your, you’re someone he listens to, your two or three things. If you’re talking to him today, you say, Mr. President, I think in regards to the Fed and the structural issues, what do you recommend, in the World Bank and IMF? Because the globalists are circling. They’re circling the Trump movement.
The Guardian’s got a big story about the national security strategy and how it came about. Some expert from the Center for Strategic Studies says MAGA is truly a revolutionary movement. When we talk about Europe and the collapse of civilization there and our support of resistance movements, President Trump and his administration, the money side and the capital market side is much more important because politics follows money.
What is your recommendation to the president?
DAVID MALPASS (GUEST): He should be aware that under the surface, people are working against what he’s trying to achieve. That’s true in Europe. They’re continuing climate regulations. They’re making them extraterritorial. That means they go after U.S. companies even if those companies try to have free markets within Europe.
On the Federal Reserve side, you’ve got this sweeping initiative by the Fed to protect the votes on the board so they can set interest rates against growth, against Trump’s growth.
He should be requesting and asking, why are we doing this? Why don’t we have a supply-side, price-rule monetary policy installed at the Fed so we can grow as a nation? The Fed’s been wrong so many times. Why would you reappoint all the people at the regional Feds, the voting members of the Board of Governors?
STEVE BANNON (HOST): 100%.
David, where can people get you? You’re putting stuff up, particularly on Twitter, all the time. Not just insightful, but a little fiery. Where do people go to follow you, sir?
DAVID MALPASS (GUEST): David R. Malpass. Or they can just Google Malpass WSJ. My articles describe it.
And you were talking about globalism. Globalism is still running amok. All these institutions are getting bigger, and I’m not sure the president’s aware of that.
STEVE BANNON (HOST): 100%. We’ll hold you back on and go through that. The pieces are amazing.
