Is the Fed a black box government? An article to understand how AI encryption czar Sacks and Silicon Valley elites analyze Trump's economy.

AI encryption czar David Sacks and his Silicon Valley partners stated in the latest episode of the "All-In Podcast" that the U.S. economy has performed well in the last two weeks, with second-quarter GDP forecast to rise to 3.8% and tariff revenue surging to $23 billion. Despite national debt interest expenses reaching $90 billion and a serious deficit, Sacks pointed out that President Trump’s tariff policy has unexpectedly created huge revenue and could even reduce the deficit by $600 billion in the future, questioning whether The Federal Reserve (FED) chairman Jerome Powell's interest rate decisions are being "politically influenced."

Q2 economic explosive growth, tariff revenue surged to 23 billion USD

Host Jason Calacanis mentioned that the United States' tariff revenue reached 23 billion dollars in May, which has doubled compared to February. Inflation has also dropped to 2.4%, and the GDP annual growth forecast could reach 3.8%, indicating a strong overall economic recovery.

However, the government still recorded a monthly fiscal deficit of up to $316 billion, with national debt interest payments approaching $90 billion per month, raising concerns.

The image shows the data chart content cited by Calacanis, with the left showing the year-on-year CPI growth rate and the right showing the GDP year-on-year growth rate forecast.

( Note: Jason Calacanis is an angel investor for well-known companies such as Robinhood, Uber, and Trello )

In this regard, Sacks stated that many experts initially criticized Trump's tariff policy, but the current economic data is quite impressive. He said:

"The decline in inflation, strong GDP, and employment exceeding expectations prove that experts are out of touch with reality."

Trump's tariffs rewrite the economic rules, and the middle class becomes the sacrificial lamb of American success.

Host Tucker Carlson and Chamath Palihapitiya criticized the previously revered "free trade" policy on the show.

Carlson admitted that he was firmly convinced of this until the day Trump announced the tariff policy and personally appeared at the White House, which made him start to question whether this "doctrine" had become outdated:

"If Trump's tariff policy really works, then it would be truly dramatic."

He bluntly stated that many Republicans are still living in the dogmas of over a decade ago.

Palihapitiya further pointed out that while American companies have made huge profits from free trade, it has been at the expense of outsourcing manufacturing and sacrificing the middle class. He estimates that if the surging tariff revenue is combined with potential savings from interest rate cuts, the government could have up to $600 billion more in fiscal space each year, which would be a significant boost to deficit reduction.

( Note: Tucker Carlson is a conservative news reporter in the United States, Chamath Palihapitiya is a former senior executive at Facebook )

Whether to lower interest rates or not is all politics, criticizing the Fed as a black box government.

Sacks and Palihapitiya stated that The Federal Reserve (FED) (Fed) is currently unwilling to lower Interest, which is actually due to political considerations.

Sacks believes that if Powell implements quantitative easing (QE) too early, he will be labeled as "Arthur Burns," the former Fed chairman from the 1970s who was criticized for being lax on inflation. Palihapitiya more bluntly states:

"The only reason why interest rates are not being lowered now is political considerations; he does not want to help Trump."

Host Carlson further mocked the Fed as a "black box government," operating in a vague and opaque manner, unable to be supervised in a democratic way.

The "Big and Beautiful Act" causes turmoil within the Republican Party, with Sacks and Carlson disagreeing.

The topic shifted to Trump's strongly promoted "One Big Beautiful Bill Act" (, which is currently stalled in the Senate for review, and within the Republican Party, it has split into three major factions: supporters, moderates, and opponents.

Sacks emphasized that the content of "Big and Beautiful" includes continuing tax cuts, eliminating the tip tax, strengthening border security, expanding energy drilling, and national defense, among other things. He also stated that this is a "one-time legislative opportunity" for President Trump to implement his campaign promises and urged the Republican Party not to divide itself.

However, host Carlson is not buying Sacks's "one-time legislation" and criticized it as the "ugliest side" of American legislation. He stated:

"This bill is incomprehensible to anyone; even the person who wrote it cannot explain it clearly. It is fundamentally aimed at evading supervision."

Carlson calls on the government to return to the traditional legislative process of "segmented deliberation and specialized committees" to avoid hidden clauses in bills.

Call on Musk and Trump to reconcile and strengthen cooperation.

Host Palihapitiya mentioned the "beef" between Musk )Elon Musk( and Trump, expressing that he felt quite sad about it. He then mentioned that he met with Musk last week and saw how the other party led the Tesla Dojo and Optimus teams like artists creating. He also said that Trump has been performing well at recent press conferences, and if the two could reconcile, it would be a good thing for America.

Host Carlson admitted that he chose to remain silent to avoid being misquoted by the media. Although he does not publicly comment, he believes that:

"Trump is too moderate on 'Big and Beautiful' and needs to manage spending more aggressively."

He called on the political sector to promote the "Fiscal Responsibility Pledge," making a balanced budget a bipartisan political commitment, and providing the public with a concrete accountability mechanism for politicians' deficit commitments.

Why is it called the "Great and Beautiful Act"? Understand how Trump fulfilled his promises to voters.

This article discusses whether the Fed is a black-box government. It explores how AI encryption czar Sacks and Silicon Valley elites analyze Trump's economy. First appeared in Chain News ABMedia.