Federal Reserve Confidence Falls to Lowest Levels - Markets Brace for Powell's Next Move
American confidence in the U.S. central bank is experiencing a continuous collapse. The latest survey conducted by Gallup shows that only 37% of Americans trust Jerome Powell's ability to manage the economy - the lowest level in years, and a sharp decline from the approval rating of 58% he received in 2020.
This decline is not limited to sentiment; it also concerns credibility. Inflation remains above target, growth is slowing, and now the public is questioning whether the Federal Reserve is capable of guiding us through this phase without making any changes.
In Jackson Hole, Powell hinted that an "adjustment" may be necessary - which suggests a future rate cut. The reaction was immediate:
The dollar fell,
Treasury bonds rose,
And stocks rallied after a volatile week.
But here’s the surprise: if the labor market rebounds in September, an early cut could reignite inflation. Even Bank of America warned that the Federal Reserve risks committing a "policy mistake" if it relaxes monetary policy too soon.
In the meantime, politics are heating up. Trump criticized Lisa Cook, a Federal Reserve board member, and is already shaping the future leadership of the central bank with his allies.
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