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Will Trump's Criticism Prompt Powell's Exit from the Federal ...
2025-06-26 22:55:10
Politics
Economy

Will Trump's Criticism Prompt Powell's Exit from the Federal Reserve?

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Federal Reserve Chair Jerome Powell's future remains uncertain amidst rising political tensions, particularly from President Trump, who has criticized Powell's cautious monetary policies. Although speculation about Powell's replacement has increased, current odds suggest only a 14% chance of his departure by year’s end.

Trump's frustration could lead to a candidate announcement for a 'shadow Fed chair,' which may influence markets ahead of Powell's term conclusion. Investors reacted positively to the Dow Jones rising 0.57% as the possibility of interest rate cuts gained traction.

Amid these developments, Powell defended the Fed's actions, asserting that it is not overreacting to geopolitical issues, including the Iran-Israel conflict. He emphasized the economy's resilience and the potential for a pause in rate cuts, while also supporting a stablecoin framework.

The financial landscape remains volatile, with the U.S. dollar reaching a three-year low amid these uncertainties.

Related news on that topic:

Could Trump's Fed Chair Choice Transform Monetary Policy and ... Markets?

The recent decline of the US dollar to a three-year low highlights the increasing uncertainty surrounding the Federal Reserve's leadership. Speculation that President Donald Trump may announce his choice for the next Fed chair sooner than expected has contributed to this volatility. Trump's critical remarks about current Chair Jerome Powell, whom he has labeled as incompetent, suggest a potential shift in monetary policy direction. This scenario raises concerns about the Fed's independence and its ability to manage interest rate expectations effectively. As the dollar weakens against major currencies, including the euro, market analysts predict a higher likelihood of interest rate cuts at the upcoming Federal Reserve meeting. Powell's cautious approach to potential rate reductions signals that the Fed is closely monitoring inflation and employment metrics. The interplay between Trump's influence and the Fed's decision-making process could significantly shape the economic landscape in the coming months. Financial markets are poised for further fluctuations as the outcomes of these developments unfold.

Powell Defends Rate Strategy Amid Trump's Criticism of Fed ... Leadership

Federal Reserve Chairman Jerome Powell recently addressed Congress, asserting that reducing interest rates is not advisable given the current inflation and economic uncertainties. He acknowledged President Trump's calls for lower rates but emphasized the importance of maintaining price stability to support a robust labor market. Powell highlighted the Fed's strategy of a 'wait-and-see' approach, citing the economy's resilience and the unpredictable impact of tariffs on inflation. He also clarified that the Fed is not reacting excessively to global geopolitical tensions. Meanwhile, President Trump hinted at a possible change in Fed leadership, criticizing Powell's performance and suggesting he would soon choose a new chair from a shortlist of candidates.

Read 3 more recent news on this topic

The press radar on this topic:

The Street
30. Juni 2025 um 12:07

Only 14% odds of Powell leaving Fed Chair

Despite rising speculation about his removal, Federal Reserve Chair Jerome Powell's chances of leaving his post by the end of the year remain low at 14%. President Trump has publicly attacked Powell, criticizing the Fed's monetary policy as being too cautious. The U.S. dollar has dropped to a three-year low due to political uncertainty, while crypto markets have held ground, with Bitcoin remaining above $107,000 despite market turmoil. Potential successors to Powell are gaining popularity on p..
New York Times - Business
26. Juni 2025 um 12:31

Investors on Edge About a Potential Shadow Fed Chair

President Trump's frustration with Fed Chair Jay Powell may lead to an early announcement of a replacement, potentially reviving the idea of a 'shadow Fed chair'. This could give Trump's preferred candidate more influence on markets before Powell's term ends next year. Markets are already reacting to the possibility, with the dollar down and US Treasury bonds up.
Crypto.news
26. Juni 2025 um 14:08

Dow Jones climbs as Trump eyes Powell replacement at Federal Reserve

The Dow Jones Industrial Average rose 0.57% as investors bet on increased odds of interest-rate cuts by the Federal Reserve following President Trump's criticism of Fed Chair Jerome Powell. Trump is reportedly close to selecting a new Fed chair, with four candidates in consideration. The market also reacted positively to easing tensions in the Middle East and recent US economic data showing a 0.5% Q1 contraction.
n-tv.de
26. Juni 2025 um 15:06

Interest rates in the future at the command?: Trump wants to subjugate the central bank with a shadow Fed chief - n-tv.de

Trump plans to appoint a shadow Fed chief to undermine Jerome Powell's authority and control US monetary policy. Finance Minister Scott Bessent had already brought up the idea during the election campaign. Economic advisor Kevin Hassett could also be considered for the position. Trading platform Saxo warns of catastrophic consequences if Trump implements his plan and destabilizes the global financial system.
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