⚠️ What Trump Said & What It Means

* 🔸Trump unleashed a blistering attack on Fed Chair Jerome Powell, calling him “TOO LATE,” “TOO ANGRY, TOO STUPID, & TOO POLITICAL” in response to the Fed’s decision to hold rates at 4.25–4.50% for the fifth straight meeting

* 🔸He blamed Powell for costing the country “trillions of dollars” and alleged corruption in the Fed’s $2.5 billion renovation project

* 🔸Trump also signaled that Powell could be fired—though he calls such a move “highly unlikely”—and hinted ongoing investigations over the renovation might be a pretext for removal

❇️ Undermining Fed Independence

* Trump’s relentless public derogation of Powell and veiled threats to fire him risk politicizing U.S. monetary policy. Economists warn this could weaken the Fed’s institutional credibility and raise borrowing costs over time

❇️Confidence in Policy Direction Wanes

* The Fed's cautious “wait and see” approach hinges on tariff-driven risks and mixed inflation signals. Trump’s attacks cast doubt on that independence, heightening concerns that monetary decisions could stem from political pressure—not economic fundamentals

❇️DOLLAR, Bonds & Equities React

* ⭕️Since Powell’s press conference, Treasury yields have risen and equity indices have slipped. Markets are also revising rate cut expectations. Futures pricing now sees less than a 50% likelihood of a September cut (down from ~65%)

🚨Trump’s verbal assault on Powell is more than political theater. It risks infringing on the Federal Reserve’s autonomy and roiling markets at a volatile moment.

🚨The combination of high tariffs, sustained inflation, political pressure, and unclear policy trajectory is increasing uncertainty—exactly what markets dread.

🚨If this trend continues, it could interfere with the Fed’s ability to navigate inflation and growth, potentially raising borrowing costs, shaking investor confidence, and weakening the overall transmission of monetary policy.

#Trump #JeromePowell #FederalReserve #FedChair