#PowellVsTrump

🔹 Trump’s Private Probe into Firing Powell

President Trump reportedly asked House Republicans if he should fire Federal Reserve Chair Jerome Powell, citing dissatisfaction over inflation and Powell's handling of Fed renovation expenses. Trump even presented a draft letter outlining the dismissal—sparking initial market jitters.

🔹 Market Volatility and Reaction

Following the news, the U.S. dollar dropped ~1.2% and the S&P 500 dipped, though markets rebounded later as Trump downplayed his intentions, calling the firing "highly unlikely" unless misconduct is proven.

🔹 Political Backlash & Legal Barriers

Wall Street and several GOP senators voiced strong support for Powell, warning that dismissing the Fed Chair could disrupt the U.S. economy and set a dangerous precedent. According to Supreme Court interpretation, Powell can only be removed “for cause,” making his firing legally questionable.

⚠️ Why It Matters

Fed independence at risk: Political interference could destabilize monetary policy credibility.

Market uncertainty: Even talk of removal has rattled investors, increasing volatility.

Macro implications: If Powell stays, markets may breathe a sigh of relief—but the underlying tension remains a risk for traders.