Confidence in the Federal Reserve is collapsing. Gallup’s latest survey shows only 37% of Americans trust Jerome Powell’s ability to manage the economy – the lowest in years and a sharp fall from the 58% approval in 2020.

This isn’t just about sentiment. It’s about credibility. Inflation remains above target, growth is slowing, and now the public is questioning whether the Fed can steer the economy without breaking something.

đŸ›ïž Powell at Jackson Hole – The Big Hint

At the Jackson Hole symposium, Powell hinted that an “adjustment” may be needed — widely seen as code for upcoming rate cuts.

The market reaction was immediate:

đŸ’” Dollar slipped

📉 Treasuries rallied

📈 Stocks bounced after a shaky week

But here’s the catch:

If the labor market rebounds in September, cutting too early could ignite inflation again.

Bank of America warned the Fed risks a “policy error” by easing prematurely.

⚖ Politics Creeps Into the Fed

The central bank’s independence is also under scrutiny:

đŸ‡ș🇾 Donald Trump slammed Fed board member Lisa Cook.

He’s already working with allies to reshape the Fed’s future leadership.

Traders are watching closely as Fed credibility looks shakier than ever.

📊 Market Implications – Volatility Ahead

The mix of low confidence, political pressure, and policy uncertainty means traders face a turbulent road:

🔔 Bonds are flashing warning signs

📉 Long-term yields remain under pressure

📊 Equities and crypto will stay hypersensitive to every Fed headline

✅ Takeaway for Traders

🎯 The Fed is losing credibility fast

đŸ›ïž Politics is increasingly interfering with monetary policy

⚡ Volatility will remain a constant feature across markets

👉 Bottom line: Stay nimble, manage risk, and don’t lean too heavily on one narrative. Relief rallies may come, but without real fundamentals, they won’t last.

#MarketPullback #TrumpFiresFedGovernorCook #FamilyOfficeCrypto #CryptoRally