At 5 AM, Trump once again used Truth Social as a megaphone, posting three messages attacking Powell —

"Inflation is down, unemployment rate skyrocketed to 4.2%, and still holding on? High tariffs have already given the economy a shot of adrenaline, if interest rates don’t drop, it’s a betrayal of the country!"

Less than two hours after this remark, the Federal Reserve's news office issued a terse statement: "The federal funds rate range remains 4.25%–4.50%, decisions are based on data."

Powell added half a sentence at a closed-door briefing: "Hastily lowering interest rates will only push the economy toward stagflation cliff."

On the data side —

Unemployment rate 4.2%, over 100,000 layoffs in April, the labor market has obviously started to "tremble."

The consumer expectation index dropped to 54.4, a new low since 2011, confidence like a deflating balloon.

Trump seized these two charts and wouldn’t let go, blasting Powell as a "data fanatic," demanding an immediate interest rate cut.

On the market side —

Bond traders originally bet on a slight rate cut in July, but now most have changed their tune: "The June FOMC will hold steady for now." The 30-Day Fed Funds futures are showing a nearly 100% probability of "staying on the sidelines."

The stock market swung with the emotions, with the Dow Jones briefly dropping 1.3%, recovering in the afternoon.

Political tension —

A draft of "impeaching Trump for interfering with an independent agency" started circulating on Capitol Hill, while on the other side of the White House, some are studying "whether it’s possible to directly fire Powell." Media watching the situation joked: "This is a tug-of-war between central bank independence and electoral politics, both sides tightly gripping the rope, unwilling to let go."

What to watch next?

June 11-12 FOMC meeting — If employment continues to weaken and prices don’t drop, Powell's team will face even greater pressure.

Will the White House really take action — how far does one need to go to fire the Federal Reserve Chairman? Lawyers are already reviewing documents.

Market sentiment index — If it drops below 50 again, large funds may preemptively protect themselves, turning the "interest rate cut script" into self-emergency measures.

A frontline trader's words might be the most reliable: "Trump is pushing, Powell is pulling, which way will it tilt — it depends on whose economic data is the teammate."