Trump, Powell
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Fed, Waller and labor market
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President Donald Trump's renewed calls for Federal Reserve Chair Jerome Powell's resignation have prompted investors to protect portfolios against the risk of higher inflation, as a central bank more willing to lower interest rates could fuel price rises and make lenders demand higher compensation to hold bonds.
Reports that President Trump was considering trying to remove Federal Reserve Chair Jerome Powell have had a clear, if modest, effect on the bond market—even after Trump told reporters that he [wasn’t “planning on doing anything.
President Trump floated the idea of firing Jerome Powell — whom he first appointed Federal Reserve chair — earlier this week, after years of on-and-off criticism over interest rates.
Dow futures are falling, the S&P 500 and Nasdaq are rising in premarket trading as the stock market considers the threat of President Donald Trump Firing Fed Chair Jerome Powell.
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.
Potential removal of Fed Chair Jerome Powell could disrupt markets, spike inflation expectations, and impact the USD and bonds.