#TrumpVsPowell @Binance Square Official
Here’s the latest update on the
**#TrumpVsPowell** conflict, synthesizing key developments from recent reports:
### 1. **Escalating Tensions Over Tariffs and Inflation**
- Former President **Donald Trump** has intensified his criticism of **Fed Chair Jerome Powell**, accusing him of exacerbating economic uncertainty by warning that Trump’s proposed tariffs (e.g., 145% on Chinese tech imports) could spike inflation and slow growth .
- Trump publicly called for Powell’s removal, stating, *"Powell’s termination cannot come fast enough!"* on Truth Social, citing frustration over the Fed’s reluctance to cut interest rates amid tariff-induced market volatility .
### 2. **Market and Political Fallout**
- Powell’s stance that the Fed must remain independent and data-driven (e.g., holding rates steady to assess tariff impacts) triggered a sharp rebuke from Trump, who accused Powell of "playing politics" .
- Markets reacted nervously: The **S&P 500 dropped 1.39%** last week, while semiconductor stocks (e.g., Nvidia) fell due to export restrictions to China, compounding fears of stagflation .
### 3. **Legal and Institutional Constraints**
- Trump lacks authority to unilaterally fire Powell. The Fed Chair’s term runs until 2026, and removal would require "cause" (e.g., malfeasance), not policy disagreements .
- Analysts warn that any attempt to oust Powell could destabilize markets further, eroding confidence in the Fed’s independence—a scenario likened to emerging-market central bank crises (e.g., Turkey’s lira collapse under Erdogan) .
### 4. **Global and Crypto Market Reactions**
- The feud spilled into crypto markets: Bitcoin dropped **3.3%** as Powell’s stagflation warnings and Trump’s tariff policies fueled risk aversion. Gold surged to record highs as a safe-haven alternative .
- Crypto investor Anthony Pompliano criticized Trump’s threats, arguing that politicizing the Fed would harm long-term economic stability .
### 5. **What’s Next?**
- **Earnings and Data Watch**: Markets are eyeing Q1 reports from Tesla and Intel (due this week) for signs of tariff resilience .
- **Political Pressure**: Trump’s team is reportedly studying legal avenues to challenge Powell, but Congressional pushback is likely .
**Key Takeaway**: The clash underscores a broader battle over monetary policy autonomy, with Trump’s tariff agenda and Powell’s inflation vigilance on a collision course. Investors should monitor Fed communications and geopolitical developments closely.
