Trump's Feud with Powell Sparks Market Turmoil, Raises Fed Independence Concerns

President Trump has intensified his public feud with Federal Reserve Chair Jerome Powell, repeatedly criticizing Powell for being too slow to cut interest rates and threatening to remove him from his position. This unprecedented political pressure on the Fed, an institution historically insulated from direct White House interference, has sparked significant market volatility, with sharp declines in stocks, bonds, and the US dollar. Many financial experts warn that undermining the central bank's independence could harm investor confidence and destabilize long-term economic policy. While Trump insists his aggressive stance is part of a larger economic strategy, critics argue that such public clashes and threats risk politicizing monetary policy and increasing uncertainty for markets. Powell, originally appointed by Trump and later reappointed by Biden, has so far resisted political pressure, emphasizing the importance of data-driven decision-making by the Fed's broader committee. The ongoing dispute raises concerns among investors and analysts about the potential consequences if a future administration were to replace Powell with a more compliant Fed chair.