Powell yet again did not cut interest rates! Trump is so anxious that he is jumping up and down: this old stubborn man will ruin the US economy if he doesn't take action!
Event Dispatch
Today, Trump once again criticized Federal Reserve Chairman Powell, accusing him of 'acting too late, too angrily, and too politically,' directly stating that he is not fit to be the Federal Reserve Chairman. This is already the third time Trump has publicly pressured for a rate cut this month, but the Federal Reserve just announced that it will maintain interest rates at 4.25%-4.5%, with two governors unusually voting against it.
Financial Month Outcry
Trump's Calculations: This old man just wants to boost the stock market by lowering interest rates and suppressing government bond yields, while conveniently creating momentum for the upcoming election! But Powell stubbornly clings to the 2% inflation target and is hesitant to act, citing tariffs raising prices.
Classic Case: Last September, Powell resisted pressure and did not lower interest rates, resulting in a three-day decline in the US stock market. Trump was furious and tweeted that 'the Federal Reserve is the enemy of the US economy.' Is history about to repeat itself?
Deadly Details: The Federal Reserve is internally divided! Trump's loyalists Waller and Bowman staged a rebellion demanding a rate cut, but Powell countered with 'the data is not clear yet.'
Market Impact
The dollar surged to a five-month high, while gold plummeted by 1.5%
Interest rate futures show the probability of a rate cut in September plummeting from 60% to 40%
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