What happens when Trump eventually fires Powell?

jessica_twt
04-18

He’ll probably replace him with a yes man like Bessent. My bet is the market would react, negatively, very negatively to the news.

Powell has handled inflation and covid decently well. Managed through Trumps first term and was re-elected by Biden even though Powell is a registered republican.

My prediction is it will be seen as massive loss in federal banking stability and result in a crash in DXY. DXY could go to 90 in first 24h and S&P to 4500 as foreign investors start trumping treasuries to get ahead of Turkey like chaos.

Further, we could also see increased selling of bonds and yields hitting 5%. We could see a double whammy of 08 like financial panic with tariffs induced geopolitical damage.

If Trump Fires Powell, Will Market Collapse?
Powell rejected all hints at rate cuts on Wednesday. He emphasized that the Fed must ensure tariffs do not spark persistent inflation, stating that "more time is needed" to assess inflation trends. He also dismissed the idea of a Fed Put. On his social media platform Truth Social, Trump lashed out: "Powell is TOO LATE AND WRONG..…Powell’s termination cannot come fast enough!" Powell’s term as a Fed governor is set to last until February 2028. ------------- What Happens If Trump Fires Powell?
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