President Trump has publicly criticized Fed Chair Jerome Powell for not lowering interest rates quickly enough, sparking worries about the independence of the Federal Reserve. This tension has led to significant market fluctuations as U.S. stocks, the dollar, and bonds were impacted negatively. Analysts suggest Powell could be positioned as a scapegoat for any economic downturn resulting from Trump's policies. Some financial experts argue that replacing Powell could threaten the Fed's credibility and its ability to manage interest rates without political pressure.
President Trump's criticism of Fed chair Jerome Powell over slow interest rate cuts raises concerns about the central bank's independence and market stability.
The current feud between Trump and Powell has intensified market fluctuations, with a significant drop in stocks and the dollar amid fears of central bank interference.
Experts warn that removing Powell might undermine the Federal Reserve's credibility, jeopardizing its ability to maintain price stability and economic trust.
As markets react negatively to Trump's stance, analysts suggest Powell may become a scapegoat for any economic downturn caused by presidential policies.
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