#PowellVsTrump
🇺🇸 Trump vs. Powell: Market Impact
1. Trump’s ongoing criticism
Donald Trump continues to pressure Fed Chair Jerome Powell to enact significant interest rate cuts, even threatening dismissal. Trump blames tariffs and economic slowdown on Powell’s cautious stance [1] [2] .
2. Fed pushback
Powell and the central bank are holding steady, citing inflation concerns and awaiting clearer data on the economy and trade policy [1] [3] .
3. Internal divide at the Fed
Fed Governor Christopher Waller supports a possible rate cut in July, offering hope to Trump’s demands. However, several Fed officials remain cautious, opting to wait for more data [4] [3] .
4. Market reaction
- Global markets have shown cautious optimism after Waller’s dovish tone, though gains were limited by Powell’s careful messaging [4] .
- The U.S. Dollar remains weak, while equities remain sensitive to geopolitical and policy uncertainty [5] [1] .
💡 What This Means for Traders
- Volatility ahead: Expect swings as Fed signals shift or Trump applies pressure.
- Enter cautiously: Consider setups where bond yields, dollar strength, and equities are factored in.
- *Watch key events*: Keep tabs on Fed minutes, Waller statements, and any new tariff announcements.
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*Question for you*: Do you think the Fed will hold or fold under political pressure?👇
