Fed, Trump and Powell
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Traders are growing increasingly confident that the Federal Reserve will cut interest rates in September amid the public feud between President Donald Trump and Fed Chair Jerome Powell. The market sees a 54% chance of the central bank lowering borrowing costs in September,
Analysts at Deutsche Bank consider the president's removal of Fed chief Jerome Powell "one of the largest under-priced event risks over the coming months."
Financial markets were reacting in an understandable way to conflicting reports over the future of Federal Reserve Chair Jerome Powell, and whether President Donald Trump will or won't be firing him soon.
Signals from the bond market suggest tariffs are only having a mild impact on asset prices, strategists say. But that could change if inflation sets in more durably.
There's a chance Donald Trump won't get lower interest rates even after he finds a replacement for Fed Chair Powell, market pros told BI.
Stocks sold off sharply intraday after multiple reports suggested President Trump is considering firing Fed Chair Jerome Powell.
President Trump's tariff threats are more about dominating the news than trade negotiations, causing market reactions and raising economic concerns. His feud with Fed Chair Jerome Powell and potential aggressive interest rate cuts add further market uncertainty.
Federal Reserve Chair Jerome Powell said he expects the impact of tariffs to show up in inflation data in coming months, while acknowledging that uncertainties remain.
In the feud between President Trump and the Fed chief, Jerome Powell, the Sun is on the side of James Madison. And Alexander Hamilton — and, while we’re at it, William McKinley and Andrew Jackson, too. That is, the side of those who forged America’s monetary principles.