TRUMP REIGNITES FEUD WITH FED CHIEF JEROME POWELL!

Donald Trump has reignited his feud with Federal Reserve Chair Jerome Powell, announcing that a decision on replacing Powell will be made "very soon". Trump criticized Powell for acting "too late" and accused the Fed of inaction compared to rate cuts in Europe. This public spat comes amid Trump's broader effort to reshape the US government's institutional structure, starting with the Federal Reserve.

Key Points:

-Trump's Criticism: Trump has repeatedly expressed frustration with Powell's decisions, particularly regarding interest rates. He believes the Fed should cut rates to boost the economy, while Powell has emphasized the need for caution amid economic uncertainty.

Potential Replacement: Kevin Warsh, a former Federal Reserve governor, has been mentioned as a potential favorite to replace Powell. Warsh is known for his critical stance on flexible monetary policies and might align the Fed with Trump's economic priorities.

Legal Implications: Trump's administration has appealed to the Supreme Court to assert the right to dismiss leaders of independent federal agencies, potentially including Powell. A pending Supreme Court case could give Trump the legal authority he needs to fire Powell.

Economic Concerns: Critics argue that Trump's attempts to undermine the Fed's independence could harm financial markets and investor trust. The Fed's dual mandate of price stability and maximum employment might be compromised if it appears politicized .

Possible Outcomes:

-Short-term Rate Cut: A rapid rate cut could energize crypto and stock markets.

-Long-term Consequences: A Fed perceived as aligned with the executive power could weaken the credibility of US monetary policy, fuel volatility, and trigger negative reactions from international institutions.

Impact on Markets: The uncertainty surrounding the Fed's independence and potential rate cuts could lead to increased market volatility .#BigTechStablecoin #TrumpVsMusk #MarketPullback #Fed $BTC