$SOL $DOGE $TRUMP
The White House: We are studying whether to fire Powell! The independence of the Federal Reserve is challenged
While fiscal risks are becoming increasingly prominent, Trump has been putting pressure on Federal Reserve Chairman Powell for two consecutive days, and the independence of the Federal Reserve is also causing market concerns.
Powell recently made it clear that he would not take emergency rescue measures due to market fluctuations. His statement immediately attracted strong criticism from Trump. According to CCTV News, the Associated Press believes that Trump's tariff policy has increased the risk of a recession in the US economy, and Trump seems to want to put the blame on Powell.
On April 17, Trump said that Powell could leave immediately and asked the Federal Reserve to cut interest rates immediately. On the 18th, he reiterated at the White House that Powell should lower interest rates. On the same day, Kevin Hassett, director of the White House National Economic Council, confirmed that Trump and his team are studying whether Powell can be fired.
This blatant interference in the central bank's decision-making has caused widespread concern in the market. As Sarah Binder, a senior fellow at the Brookings Institution, said, "The Fed needs public confidence. But if the president tries to get Powell out of office, it will only increase uncertainty."
Former Fed Chairman Ben Bernanke also warned: "Political interference in monetary policy may produce undesirable boom-bust cycles, ultimately leading to economic instability and rising inflation."
Undermining the independence of the Federal Reserve is tantamount to shaking another pillar of the dollar system. Kathy Jones, chief fixed income strategist at Schwab Financial Research Center, warned that trying to fire Powell could exacerbate the sell-off of U.S. Treasuries and the dollar.
