⚠️ TRUMP VS. POWELL: Market on Edge
Trump’s Truth Social Blast:
> “The WSJ ran a typically untruthful story… Bessent told me firing Powell 'would be bad for the Market.'” He claimed markets are at record highs because of him, warning of a crash otherwise .
📊 Why It Matters:
Fed independence threatened: Removing Powell could shake investor confidence and risk derailing inflation control .
Legal minefield: Law permits firing “for cause” only, e.g., misconduct—not policy disagreements
Market jitters already showing: Bond yields are spiking, USD volatility rising, as investors brace for political interference
👀 What Could Happen:
Legal showdown: Supreme Court precedents (e.g., Humphrey’s Executor) may block any firing attempt .
Investor strategy shifts: Expect moves into bonds, gold, and safe-value stocks as a hedge .
🏁 Bottom Line:
A sharp tweet—but a real threat. Even if Trump can’t fire Powell, the uncertainty itself could disrupt markets, shape policy expectations, and influence next year’s economic agenda.
#TrumpVsPowell #FedIndependence #MarketVolatility #ForCause #PolicyRisk
