**šØ Trump vs. Powell: Clash Over Rates, Recession, and the 2025 Economy**
The long-simmering feud between former President **Donald Trump** and Federal Reserve Chair **Jerome Powell** has reignited in 2025, as the U.S. economy teeters between recession fears and stubborn inflation. Trump, now a leading presidential candidate, has launched a blistering attack on Powellās latest rate hike to **6.5%**, calling it āa catastrophic betrayal of American workers.ā
The Battle Lines
- **Trumpās Fury:** āPowellās obsession with killing inflation is killing the economy,ā Trump declared at a rally, vowing to replace Powell if elected. He blames the Fedās tightening for spiking mortgage rates and a **15% drop in the S&P 500** since January.
- **Powellās Defense:** The Fed Chair insists rates are necessary to curb **5.8% core inflation**, warning, āPremature easing risks a 1970s-style spiral.ā The Fedās latest projections show just one cut in 2025, infuriating markets.
**Why It Matters**
- **Trumpās Playbook:** Stimulate growth at all costs, even risking inflation.
- **Powellās Mandate:** Prioritize price stability, even if it slows hiring.
The conflict has split voters: 55% of Republicans back Trumpās ācheap moneyā agenda, while 62% of independents fear inflation more than recession.
**Market Fallout**
- The 10-year Treasury yield hit **4.9%**, its highest since 2007.
- Bitcoin surged to **$160,000** as a āpolitical hedge,ā per Ark Invest.
- The U.S. dollar index (DXY) plummeted to 90, a 3-year low.
**Whatās Next?**
With Trump leading polls, investors fear a 2026 Fed overhaul. āA Trump win could mean negative real rates and a debt bubble,ā warned JPMorganās Jamie Dimon. Powell, meanwhile, faces bipartisan heat: Progressives blame him for unemployment, conservatives for āoverreach.ā
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