President Trump's recent threats towards the Federal Reserve have created turmoil in global markets, contradicting the adage of 'don't fight the Fed.' His insistence that the Fed lower interest rates immediately has sparked considerable market volatility, with the S&P 500 experiencing notable losses. Trump's attacks on Fed Chair Jay Powell further erode confidence in the dollar, which has already fallen significantly this year. Analysts forewarn of a potential recession linked to the trade war, causing companies to hesitate on financial forecasts amid tariff uncertainties.
"Trump's broadsides have also rattled investor confidence in the dollar and in long-dated Treasury notes and bonds."
"Undermining the bedrock notion of Fed independence will handcuff the central bank's efforts to fight inflation," warned Austan Goolsbee, president of the Chicago Fed.
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