⚠️ TRUMP VS. POWELL: Markets on High Alert
Trump’s Latest Truth Social Rant:
“The WSJ published a typically false story… Bessent told me firing Powell ‘would be bad for the Market.’”
Trump credits himself for market highs and warns of a crash if he's not at the helm.
📊 Why This Matters:
Fed Independence at Risk: Attempting to oust Powell could shake investor trust and jeopardize inflation control.
Legal Hurdles: The law only allows firing a Fed Chair “for cause”—not just policy disagreements.
Market Tension Rising: Bond yields are climbing and USD volatility is increasing as investors brace for potential political overreach.
👀 What Could Be Next:
Legal Standoff: Supreme Court precedents (like Humphrey’s Executor) may block any removal attempt.
Investor Moves: Markets could shift toward gold, bonds, and defensive stocks as a hedge against chaos.
🏁 The Bottom Line:
One tweet stirred the pot—but the implications are real. Whether or not Trump can fire Powell, the looming uncertainty could rattle markets, reshape policy expectations, and define the economic narrative heading into 2026.
#TrumpVsPowell #FedIndependence #MarketVolatility #MonetaryPolicy #SafeHavenAssets
