#PowellVsTrump 📢
Trump vs. Powell: Tension that shakes the markets
💥
Trump showed a draft letter to dismiss the Fed chairman, Jerome Powell, for not lowering rates or for excess costs in the Fed’s renewal ($2.5B), but then said it is "very unlikely" except for fraud.
Key:
Legality: The Supreme Court protects Powell; dismissal requires "just cause".
Markets: Initial declines and a rise in bonds, but they stabilized after Trump's denial.
Risks: Threatening the independence of the Fed may damage economic confidence and inflation control.
To follow: Renewal costs, market movements, and legal changes.