Offers You’d Better Not Refuse

Last week, President Trump ramped up pressure on two favorite targets: elite universities and Fed Chair Jerome Powell. In the “War on Woke U,” the administration landed a $50 million settlement from Brown—the third Ivy to cut a deal—and added Duke and UCLA to the hit list with new civil rights probes and a funding cutoff. Meanwhile, after the Fed held rates steady, Trump escalated his campaign to oust Powell, denouncing him as a “stubborn MORON” on Truth Social.

In this episode, Cato scholars break down the Art of the Forcible Deal. What risks do Trump’s pressure tactics pose for monetary stability? Will they reform broken institutions—or just deepen their politicization? And is Trump’s strongarm approach an aberration, or a preview of the modern presidency’s future?

Featuring Gene Healy, Ryan Bourne, Emily Ekins, and Jeffrey Miron

Show Notes:

• David Beckworth, “The Consolidated Government Budget Constraint Does Not Care About Your Fed Independence Feelings,” Substack (July 25, 2025)
• Ryan Bourne, “A Case for Federal Deficit Reduction,” Cato Policy Analysis no. 973 (April 18, 2024)
• Michael Chapman, “A Win for Liberty: Congress Defunds CPB, NPR, and PBS,” Cato@Liberty (July 23, 2025)
• Jeffrey A. Miron and Jacob P. Winter, “Giving Up Federal Funds Would Do Harvard Good,” Harvard Crimson (April 30, 2025)
• Norbert Michel and Jai Kedia, “A Check-In on the Fed: Why Politically Motivated Monetary Policy Is Dangerous and Counterproductive,” Cato Video (July 22, 2025)

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