**🚨 Trump vs. Powell: Clash Over Rates, Recession, and the 2025 Economy**
The long-simmering feud between former President **Donald Trump** and Federal Reserve Chair **Jerome Powell** has reignited in 2025, as the U.S. economy teeters between recession fears and stubborn inflation. Trump, now a leading presidential candidate, has launched a blistering attack on Powell’s latest rate hike to **6.5%**, calling it “a catastrophic betrayal of American workers.”
The Battle Lines
- **Trump’s Fury:** “Powell’s obsession with killing inflation is killing the economy,” Trump declared at a rally, vowing to replace Powell if elected. He blames the Fed’s tightening for spiking mortgage rates and a **15% drop in the S&P 500** since January.
- **Powell’s Defense:** The Fed Chair insists rates are necessary to curb **5.8% core inflation**, warning, “Premature easing risks a 1970s-style spiral.” The Fed’s latest projections show just one cut in 2025, infuriating markets.
**Why It Matters**
- **Trump’s Playbook:** Stimulate growth at all costs, even risking inflation.
- **Powell’s Mandate:** Prioritize price stability, even if it slows hiring.
The conflict has split voters: 55% of Republicans back Trump’s “cheap money” agenda, while 62% of independents fear inflation more than recession.
**Market Fallout**
- The 10-year Treasury yield hit **4.9%**, its highest since 2007.
- Bitcoin surged to **$160,000** as a “political hedge,” per Ark Invest.
- The U.S. dollar index (DXY) plummeted to 90, a 3-year low.
**What’s Next?**
With Trump leading polls, investors fear a 2026 Fed overhaul. “A Trump win could mean negative real rates and a debt bubble,” warned JPMorgan’s Jamie Dimon. Powell, meanwhile, faces bipartisan heat: Progressives blame him for unemployment, conservatives for “overreach.”
**👉 Trade the Volatility:** [DXY Index on Binance](https://www.binance.com)
#FederalReserve #USEconomy #Election2025 #Inflation
