The article discusses the increasing tension between President Trump and Jerome Powell, chairman of the Federal Reserve, as stock markets and the dollar decline amid tariff issues. Trump seems to be preparing to blame Powell for economic struggles, suggesting he may consider firing him. While this could create immediate interest rate cuts, it may also damage confidence in US monetary policy, raising long-term borrowing costs. Some economists believe a replacement could mitigate damage, but the overall sentiment is caution as central bank independence is crucial in unstable economic conditions.
If loose monetary policy were thrown into an already unstable inflationary and tariff mix, the dollar would fall further, the flight from US assets would accelerate...
Trump's termination cannot come fast enough! declared Trump, which was several notches beyond his usual whine about urging the Fed to hurry up with cuts in interest rates.
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