#PowellVsTrump
Trump has raised the possibility of removing Jerome Powell as chairman of the Fed, although he later stated that it is "very unlikely" unless there is fraud or misconduct.
🔻 This news shook the markets: the dollar fell and Treasury yields rose following the rumors, only to stabilize when Trump downplayed the option.
🏛️ Several Republican senators, such as Thom Tillis and John Kennedy, warned that it would destabilize the independence of the Fed and could erode market confidence.
🏦 Additionally, business leaders like Jamie Dimon (JP Morgan) emphasized that political pressure on the Fed would be detrimental to the economy and the stability of the dollar.
📌 In summary:
Trump threatens to remove Powell → markets react → Trump backtracks → political and financial leaders warn about risks to the independence of the Fed.