He’s personally called Powell “Mr. Too Late” and declared him a “major loser.” That combined deep public criticism has ignited a historic sell-off on Wall Street. The emerging instability is sparking fears about the long-term stability of the U.S. economy and its potential to impact global markets, too.
Here’s what the former president, also known as “Individual-1” in court documents, recently posted on Truth Social about this topic. He’s at it again, pushing Powell to cut interest rates. He predicted that the economy would start to slow if the Federal Reserve did not move quickly to lower rates. That pressure campaign is gaining momentum. As noted, Trump has suggested that he would fire Powell and reportedly has directed his team to research the consequences of such an action.
The former president’s rhetoric has sparked widespread market volatility, particularly following his announcement of a series of tariffs dubbed “liberation day tariffs.” These tariffs have added new levels of uncertainty over U.S. trade policy. They are a central area of focus in advocacy and policy debates leading up to the upcoming International Monetary Fund (IMF) and World Bank Spring meetings.
Unsurprisingly, Trump’s comments have had real-world effects on the financial markets. The U.S. dollar index has turned south, as investors take flight from U.S. dollar assets and Treasurys. This unprecedented transition has the whole of the U.S. economy a bit on edge. It has prompted retaliatory moves from other currencies, underscoring the interlinked nature of global finance.
Market analysts note that Trump’s renewed pressure on Powell comes at a sensitive time for the Federal Reserve, which is grappling with inflationary pressures and economic uncertainties. His threats to retaliate against any country that falls in line with Washington’s plans further complicate the endeavor. All the while, global trade relations still remain up in the air.
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