V Reversal... Trump "Fires" Powell? New Drama, More Volatility?

Yesterday, the market went through a nerve-wracking 20 minutes, experiencing a sharp V-shaped rebound. Trump escalated the drama by saying: "I’ve already drafted the letter to fire Fed Chair Powell!"

Following that remark, the market immediately took another leg down.

The chaos lasted around 20 minutes—until the TACO moment. Speaking from the Oval Office, Trump later told reporters: "There are currently no plans to replace him."

Black swan event? Major banks stand out to defend Fed

If Powell were actually fired, that would undoubtedly be a black swan-level event—a super bearish shock. A 15% crash in U.S. stocks in the short term wouldn’t be surprising at all.

One of the current uncertainties hanging over the market is the escalating feud between President Trump and Fed Chair Powell. However, senior leadership from some of Wall Street’s largest banks have publicly emphasized the importance of an independent Federal Reserve.

Bank of America CEO Brian Moynihan, Goldman Sachs CEO David Solomon, and JPMorgan CEO Jamie Dimon all made public statements yesterday underscoring the Fed’s autonomy.

These are arguably the three most authoritative voices on Wall Street even Trump has to pay attention to what they say.

Trump knows he technically can’t fire Powell. This latest drama is more likely a pressure tactic, trying to push the Fed into cutting rates as early as July, instead of the currently expected September cut. If the FOMC holds steady in July, markets may have to wait another two months—an outcome Trump clearly wants to avoid.

At the core of all this chaos is one man: Trump.

Not long ago, he had a public spat with Elon Musk, throwing $Tesla Motors(TSLA)$ into turmoil.

Before taking office, he openly criticized Jeff Bezos, attacked his media platforms: $Amazon.com(AMZN)$ and The Washington Post, and even suggested $Meta Platforms, Inc.(META)$ Mark Zuckerberg should be thrown in jail.

What do you think?

So many powerful people have had to bow to Trump’s influence—can the next Fed Chair hold their ground when Powell’s term ends in 2026?

How long will Trump keep stirring up drama and picking new targets?

Fortunately, it always ends with a TACO moment... Does that mean every Trump tantrum is a dip-buying opportunity in disguise?

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