๐บ๐ธ ๐๐ฒ๐ฟ๐ผ๐บ๐ฒ ๐ฃ๐ผ๐๐ฒ๐น๐น ๐๐ด๐ฟ๐ฒ๐ฒ๐ ๐๐ผ ๐ฆ๐๐ฒ๐ฝ ๐๐ผ๐๐ป ๐ฎ๐ ๐๐ฒ๐ฑ ๐๐ต๐ฎ๐ถ๐ฟ ๐๐ณ๐๐ฒ๐ฟ ๐ง๐ฟ๐๐บ๐ฝโ๐ ๐๐ป๐๐ฒ๐ป๐๐ฒ ๐ฃ๐ฟ๐ฒ๐๐๐๐ฟ๐ฒ
โ After months of tension, Jerome Powell has finally agreed to resign as Federal Reserve Chair, following relentless criticism from President Donald Trump and his team.
๐ Why it happened:
Trump publicly demanded a 300 basis point rate cut, arguing it would save over $1 trillion yearly โ though experts say that figure is based on flawed math.
Economists point out only around 20% of U.S. federal debt can realistically be refinanced in the first year, meaning real savings would be much lower.
๐ Public attacks intensified:
Trump slammed Powell for "costing the country money" and blocking growth.
The White House also targeted the $2.5B renovation of the historic Eccles Building, calling it โhorrifyingโ and โlike Versailles.โ
โ Legal limits & strategy:
Legally, Trump canโt directly fire the Fed Chair after a Supreme Court ruling that protects against removal without cause.
Instead, Trump's team turned to public shaming, media pressure, and questioning Fed spending.
๐ Market reaction:
Despite Powellโs decision, bond yields still climbed as traders remain skeptical about what comes next.
๐ Key context:
Powell was actually Trumpโs own appointee, which adds irony to the conflict.
Under political fire, Powell explained the renovation involved no luxury add-ons โ only repairs and compliance upgrades.
๐ก Bottom line:
Trumpโs unprecedented pressure campaign didnโt end with firing, but it did push Powell out โ leaving markets watching closely for what the Fedโs leadership change could mean next.