Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » What Could It Mean for Your Wallet If Trump Fired Fed Chair Jerome Powell?
    Bond

    What Could It Mean for Your Wallet If Trump Fired Fed Chair Jerome Powell?

    userBy userApril 22, 2025No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    President Donald Trump and Federal Reserve Chair Jerome Powell have something of a checkered history, particularly recently, with the latter being reluctant to further cut interest rates despite continued pressure from the president.

    Be Aware: Trump Isn’t Ruling Out a Recession This Year — What Could That Mean for Your Wallet?

    Try This: These 10 Used Cars Will Last Longer Than an Average New Vehicle

    Most recently, Trump has expressed displeasure with Powell for his persistent reluctance to further lower rates.

    “I’m not happy with him. I let him know it. … If I want him out, he’ll be out of there real fast, believe me,” Trump said last week while meeting with Italian Prime Minister Giorgia Meloni.

    Also last week, Powell remarked at the Economic Club of Chicago that the Fed was taking a more cautious, wait-and-see approach to further reduction of interest rates, indicating that the body would “wait for greater clarity before considering any adjustments to our policy stance.”

    Powell also indicated that Trump could not remove him from his post, as the Fed’s “independence is a matter of law.”

    But, should Trump actually be successful in evicting Powell from his position, what impact might it have on your finances?

    Should Trump insist on Powell’s removal by any means necessary, the already embattled stock market could see further punishment.

    As Semafor detailed, investors are already fraught with anxiety over current market conditions, with some viewing the current lows as a buying opportunity, while others are concerned over recessionary fears and hits to their retirement funds and existing investment portfolios.

    Given the Fed’s perceived history of independence from the political arena, this move could exacerbate ongoing market turbulence.

    “Trump is taking the cudgel to elements of the U.S. institutional framework that have long been seen as free from direct political interference,” said Eswar Prasad, an economist at Cornell University, as cited by Semafor.

    “This could have serious long-term ramifications for the value and broad use of the dollar in global markets,” Prasad added.

    Find Out: Trump Wants To Replace Income Taxes With Tariffs: 2 Impacts on the Middle Class

    If Trump does replace Powell with his preferred replacement, such a deal could come with strings attached related to moderate-to-substantial short-term rate cuts.

    And when rates fall, your money is affected. Cash investments, certificates of deposit and savings accounts usually decline in value, but auto loans, home equity loans, adjustable-rate mortgages and short-term bonds may benefit from the move, at least in the near future.

    Semafor reported that Trump’s top replacement pick — Kevin Warsh, former Fed governor — is “one of the most instinctively and consistently hawkish Fed policymakers in modern history,” as Wall Street Journal editor Mike Byrd termed him on X.

    On the other hand, Bloomberg reported Queens’ College of Cambridge president and Bloomberg opinion columnist Mohamed El-Erian as stating that Warsh’s credentials would imply that “the markets would be very comfortable with” him as a pick — one who would not engage in constant warfare with the White House while having “tremendous experience” and expertise.

    Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

    More From GOBankingRates

    This article originally appeared on GOBankingRates.com: What Could It Mean for Your Wallet If Trump Fired Fed Chair Jerome Powell?



    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleHere’s a 4-share ISA portfolio that could one day generate £1,500 a month in passive income
    Next Article Nvidia stock hasn’t been this cheap in years. Time to buy?
    user
    • Website

    Related Posts

    Japan’s super-long yields hover near record highs on inflation, fiscal concerns

    May 22, 2025

    What Moody’s U.S. debt downgrade means for your gay wallet

    May 22, 2025

    The bond market is shaking Wall Street again, this time because of worries about tax cuts

    May 22, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d