Donald Trump keeps baiting the Fed—but Jerome Powell’s not biting: ‘I’m going to disappoint you’

Published On Dec 5, 2024, 4:57 PM

The article discusses the ongoing tensions between President-elect Donald Trump and Federal Reserve Chair Jerome Powell, following Trump's continued criticism of Powell and the Federal Reserve's independence. Trump has questioned whether the Fed should align its policies more closely with the White House, a move that threatens the Fed's independence. Powell, however, has emphasized that the Fed must operate without political interference to effectively manage the economy. He addressed concerns about his job security amid Trump's threats to fire him, confirming that his focus remains on economic stability rather than political pressures.

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Stock Forecasts

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With the Federal Reserve facing pressure from a politically engaged president, investor sentiment may become cautious. If Powell continues to uphold Fed independence, it may maintain market stability, but heightened political dynamics could lead to volatility. Investors should keep an eye on interest rate changes and statements from the Fed in the coming months.

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