Trump Slams Powell as Too Late! What Happens If Trump Fires Powell?
Today, ECB announced a 25 bps cut, bringing it down to 2.25%.
Markets have long speculated that Trump’s erratic tariff moves were a pressure tactic aimed at forcing the Fed to cut rates. Now that Europe has lowered its rates, Powell’s continued inaction has made Trump even angrier.
On his social media platform Truth Social, Trump lashed out:
"Powell is TOO LATE AND WRONG. Yesterday he issued another report that was, as usual, a complete mess! Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.
…
Powell’s termination cannot come fast enough!"
It’s currently unclear whether Trump is referring to Powell’s scheduled term ending in May 2026, or if he intends to push for an early removal. The White House has not responded to requests for comment. Powell’s term as a Fed governor is set to last until February 2028.
US Federal Reserve: US Fed cuts rates by quarter point; Powell says 'NO' to potential Trump pressure to step down early - The Economic Times Video | ET Now
Powell vs. Trump: A Clash Brewing?
Powell rejected all hints at rate cuts on Wednesday. He emphasized that the Fed must ensure tariffs do not spark persistent inflation, stating that "more time is needed" to assess inflation trends. He also dismissed the idea of a Fed Put.
Powell further noted that the Fed may miss its 2024 inflation target, though it still expects to return to target in 2025. Does this mean the market's expectation of three rate cuts this year might be trimmed back again?
Yet despite the policy tension and headline noise, market volatility hasn’t surged dramatically. The FedWatch tool still prices in a ~60% chance of a June rate cut, only slightly down from post-CPI levels.
In the face of these crosscurrents:
Are you going fully to cash, waiting for clarity?
Or do you have a disciplined dip-buying strategy in place?
What would happen if Trump fire Powell?
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I follow a disciplined dip-buying strategy, especially during periods of uncertainty like this. The Fed’s cautious tone makes sense to me—cutting too soon could backfire if inflation flares up again. So while Europe is easing, I think Powell is right to wait for more clarity on the inflation trend.
As for Trump trying to fire Powell, it’s more political noise than a real risk—for now. The Fed’s independence is critical, and any serious attempt to remove Powell early would likely trigger legal and institutional pushback. Until then, I’ll keep focusing on fundamentals and avoid getting caught in the drama.
@Tiger_comments @TigerStars
Markets have long speculated that Trump’s erratic tariff moves were a pressure tactic aimed at forcing the Fed to cut rates. Now that Europe has lowered its rates, Powell’s continued inaction has made Trump even angrier.
Powell rejected all hints at rate cuts on Wednesday. He emphasized that the Fed must ensure tariffs do not spark persistent inflation, stating that "more time is needed" to assess inflation trends. He also dismissed the idea of a Fed Put.
Powell further noted that the Fed may miss its 2024 inflation target, though it still expects to return to target in 2025.
Are you going fully to cash, waiting for clarity?
Or do you have a disciplined dip-buying strategy in place?
What would happen if Trump fire Powell?
leave your comments to win tiger coins~
Key impacts include:
Market Volatility: Stocks and bonds may swing wildly due to uncertainty.
Fed Independence: Confidence in data-driven decisions could erode, raising long-term risks.
Policy Changes: A new chair may signal shifts, creating further instability.
Investment Strategies:
Go to Cash: Protect your portfolio during initial turmoil.
Disciplined Dip-Buying: Identify strong assets and set thresholds for re-entry.
Global Diversification: Reduce U.S.-specific exposure by investing internationally.
The recent selloff of the US long term Treasury Bonds are a strong indicator of the global and market uncertainty and trust in the strength of the US markets.
Despite this uncertainty, I will continue to stay invested and dollar cost average into my favourite index ETFs and let the magic of compounding happen over a long term horizon.
No single individual, not even Donald Trump can directly control the US market. Kudos to Powell for staying true to his fiduciary's stance.
@Tiger_comments @TigerStars @CaptainTiger @Tiger_SG
If really Powell goes the next one maybe do it badly too. So need to manage this well
鲍威尔虽然一直被批评偏鹰,但他坚持的货币政策独立性,是支撑市场信心的底线。一旦这条线被突破,不只是美联储的公信力会受损,连美国资产的“避风港”地位也可能动摇。投资者可能会解读为“白宫开始干预货币政策”,从而引发美债抛售、美元下跌,甚至黄金避险情绪升温。
如果特朗普换上一个偏鸽派、对降息更积极的主席,短期对股市或许是利好,尤其是科技股和高估值板块,但背后潜藏的通胀风险也不能忽视。市场会担心美联储是否还能理性对抗通胀,还是将沦为政治工具。
对我个人来说,这种局势最需要的是灵活调整资产配置,紧盯美债和美元指数的走势。政治干预货币政策,是一把双刃剑,利好消息的背后,往往藏着更深的风险。