#TrumpVsPowell

The feud between Trump and Powell centers around their differing views on economic policies, particularly tariffs and interest rates. Here's what's happening ¹:

- *Tariffs and Inflation*: Trump wants to impose broad tariffs, while Powell fears this could trigger stagflation, a mix of high inflation and economic slowdown. Powell has warned that tariffs could fuel inflation and stall growth, prompting Trump to call for his removal.

- *Interest Rates*: Trump believes the Fed is keeping rates too high, harming growth and job creation. He wants rate cuts immediately, but Powell is cautious due to inflation concerns.

- *Fed Independence*: The Federal Reserve Act protects the central bank's independence, limiting presidential authority to remove a Fed chair without cause. Powell has stated that his independence is a matter of law and has no plans to step down before his term ends in May 2026.

*Key Quotes:*

- Trump: "He'll be out of there real fast, believe me" if reelected, referring to Powell.

- Powell: "Our independence is a matter of law" and "No" when asked if he'd resign if Trump demanded it.

*Potential Impact:*

- Goldman Sachs and other banks have raised recession risks due to Trump's proposed tariffs.

- Yale estimates tariff-related inflation could cost families up to $4,900 per year.

- Consumer confidence is shaky, and Wall Street is watching closely ¹.