Trump’s Fed Firestorm: Will “Late Powell” Crash the Rate Cut Party?
Trump slams Fed’s Powell for delaying rate cuts, sparking market buzz! Will this feud reshape the economy?
Trump’s Fed Firestorm: Will “Late Powell” Crash the Rate Cut Party?
On May 17, 2025, U.S. President Donald Trump reignited his feud with Federal Reserve Chair Jerome Powell, claiming a consensus exists that the Fed should cut interest rates soon. Labeling Powell “Late Powell,” Trump warned on social media that the Fed chief’s delays could “mess things up again.” This comes as markets anticipate the Fed’s next moves, with 91.7% expecting rates to stay at 4.25–4.50% in June. Trump’s push for lower rates aligns with his tariff-driven economic agenda, including a planned China summit with Xi Jinping to ease trade tensions.
What’s the Context?
Trump argues lower rates would boost growth, citing falling oil and grocery prices. However, Powell remains cautious, noting inflation’s stickiness at 2.7% and tariff risks that could spike prices. The Fed’s recent decision to hold rates steady reflects a “wait-and-see” approach, balancing solid job growth (unemployment at 4.1%) against trade policy uncertainties.Trump’s frustration, with some crypto enthusiasts linking rate cuts to Bitcoin’s rise above $104,000.
Trump argues lower rates would boost growth, citing falling oil and grocery prices. However, Powell remains cautious, noting inflation’s stickiness at 2.7% and tariff risks that could spike prices. The Fed’s recent decision to hold rates steady reflects a “wait-and-see” approach, balancing solid job growth (unemployment at 4.1%) against trade policy uncertainties.Trump’s frustration, with some crypto enthusiasts linking rate cuts to Bitcoin’s rise above $104,000.
Why It Matters
For new investors, this clash highlights how Fed decisions sway markets. Lower rates could lift stocks and crypto but risk inflation if mistimed. Trump’s pressure tests the Fed’s independence, potentially unsettling investors. A misstep by either side could jolt global markets, especially with U.S.-China trade talks looming.
For new investors, this clash highlights how Fed decisions sway markets. Lower rates could lift stocks and crypto but risk inflation if mistimed. Trump’s pressure tests the Fed’s independence, potentially unsettling investors. A misstep by either side could jolt global markets, especially with U.S.-China trade talks looming.
What’s Next?
The Fed’s June meeting will be pivotal. Investors should track inflation data and Trump’s China trip for clues. Diversifying portfolios can hedge against volatility.
The Fed’s June meeting will be pivotal. Investors should track inflation data and Trump’s China trip for clues. Diversifying portfolios can hedge against volatility.
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The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
