Donald Trump Criticizes Fed Chairman Powell, Calls for Resignation

Donald Trump has continued to criticize Federal Reserve Chairman Jerome Powell, whom he appointed in the previous administration. In a press conference after the NATO summit, Trump called Powell “of average intelligence,” questioning his performance. “I know who I would pick out of three or four people, I mean he will be leaving soon, luckily, because I think he is really bad.” — Donald Trump, President of the United States Jerome Powell still maintains the current interest rate policy of the Federal Reserve, despite comments from Trump. Powell’s earlier statements in the congressional hearing highlighted concerns about inflation related to Trump’s tariff proposals. The possibility of leadership change at the Fed has an immediate impact on the market. The yield on 10-year Treasury bonds has decreased, indicating expectations that a moderate successor could lead to interest rate cuts. The US dollar index has declined, continuing its downward trend. The change in the leadership of the Fed could impact global financial markets and reinforce changes in monetary policy. This move may intensify the volatility of risk assets, including stocks and cryptocurrencies, as the market adjusts to potential new policies. The Supreme Court has recently reinforced the independence of the Fed, making the removal of Powell a significant legal challenge. Observers note that historical precedents of such political pressure affect both market behavior and asset values. The financial markets and the economy in general may face impacts if the monetary policy of the United States changes. Cryptocurrencies and other risky assets may experience volatility based on expectations of interest rate changes and economic forecasts, due to shifting leadership signals.