V Reversal... Trump "Fires" Powell? New Drama, More Volatility?
Yesterday, the market went through a nerve-wracking 20 minutes, experiencing a sharp V-shaped rebound. Trump escalated the drama by saying: "I’ve already drafted the letter to fire Fed Chair Powell!"
Following that remark, the market immediately took another leg down.
The chaos lasted around 20 minutes—until the TACO moment. Speaking from the Oval Office, Trump later told reporters: "There are currently no plans to replace him."
Black swan event? Major banks stand out to defend Fed
If Powell were actually fired, that would undoubtedly be a black swan-level event—a super bearish shock. A 15% crash in U.S. stocks in the short term wouldn’t be surprising at all.
One of the current uncertainties hanging over the market is the escalating feud between President Trump and Fed Chair Powell. However, senior leadership from some of Wall Street’s largest banks have publicly emphasized the importance of an independent Federal Reserve.
Bank of America CEO Brian Moynihan, Goldman Sachs CEO David Solomon, and JPMorgan CEO Jamie Dimon all made public statements yesterday underscoring the Fed’s autonomy.
These are arguably the three most authoritative voices on Wall Street even Trump has to pay attention to what they say.
Trump knows he technically can’t fire Powell. This latest drama is more likely a pressure tactic, trying to push the Fed into cutting rates as early as July, instead of the currently expected September cut. If the FOMC holds steady in July, markets may have to wait another two months—an outcome Trump clearly wants to avoid.
At the core of all this chaos is one man: Trump.
Not long ago, he had a public spat with Elon Musk, throwing $Tesla Motors(TSLA)$ into turmoil.
Before taking office, he openly criticized Jeff Bezos, attacked his media platforms: $Amazon.com(AMZN)$ and The Washington Post, and even suggested $Meta Platforms, Inc.(META)$ Mark Zuckerberg should be thrown in jail.
What do you think?
So many powerful people have had to bow to Trump’s influence—can the next Fed Chair hold their ground when Powell’s term ends in 2026?
How long will Trump keep stirring up drama and picking new targets?
Fortunately, it always ends with a TACO moment... Does that mean every Trump tantrum is a dip-buying opportunity in disguise?
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@MHh @Universe宇宙 @melson @HelenJanet @Wayneqq
特朗普知道他嚴格說來不能解僱鮑威爾。這部最新劇更有可能是一部壓力戰術，試圖將美聯儲推入最早7月降息，而不是目前預期的9月份削減。如果FOMC在7月份保持穩定，市場可能還要再等兩個月——這是特朗普顯然希望避免的結果。
當前籠罩市場的不確定性之一是不斷升級的世仇特朗普總統和美聯儲主席鮑威爾之間。然而，華爾街一些最大銀行的高級領導層公開強調了獨立的美聯儲.
I don’t think trump will ever stop stirring up drama. He has many targets that he wants done and he will be relentless until taco. I think the market now sees dips as good buy opportunities as reflected.
Still, these outbursts often create short-term volatility & sometimes buying opportunities. The market's quick rebound suggests that optimism remains, especially with potential rate cuts ahead. If Trump keeps pushing for July cut and the Fed holds off until September, we could see sharp swings.
In the bigger picture, the real concern is whether future Fed chairs can stay independent under such pressure. Trump has a pattern of publicly attacking powerful figures, from Elon Musk to Jeff Bezos. As long as markets focus on data & fundamentals, I see these moments as temporary storms rather than lasting threats.
@TigerStars @Tiger_comments
Powell has become the monetary gladiator in a coliseum of political chaos. He has held rates steady despite Trump's tariff fueled inflation and pressure to slash interest rates. He ignored insults from Trump such as "moron", "Mr Too Late" and kept his laser focus on data, not drama.
When Powell leaves his post as Chair of the Feds in May 2026, he will be remembered as the guy who stand against the power of a US President for integrity and defending the important role of the Federal Reserve. The Big question is will the next Chair serve the data or serve the Donald? The Fed isn't just setting rates, it is fighting for its soul to stay true to the course of remaining independent and not unduly influenced by political pressure.
@Tiger_comments @TigerStars @Tiger_SG @CaptainTiger
@Tiramisu2020
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@Huat99
Trump's preference for a dovish Fed chair could lead to:
- *Lower Interest Rates*: Potentially stimulating economic growth but risking inflation.
- *Market Volatility*: Uncertainty surrounding the Fed's leadership could impact market stability.
- *Dollar Value*: Trump's influence on the Fed might weaken the US dollar
Investors are closely watching the situation, as it may influence:
- *Stock Market*: A dovish Fed chair could boost stock valuations.
- *Bond Market*: Changes in interest rates & monetary policy could impact bond performance.
- *Cryptocurrencies*: Fed decisions on interest rates & quantitative easing might affect crypto markets.