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Trump is once again "making moves" on economic policy. This time, he's targeting Federal Reserve Chair Jerome Powell, openly stating that with inflation so low in December, failing to cut interest rates quickly would be a missed opportunity. The implication is clear — it's time to loosen policy.
Last month, Powell emphasized the importance of maintaining the Fed's independence, only to be immediately "pressured from afar" by the President. On one side, low inflation data is staring at us; on the other, top officials are publicly calling for action. These opposing forces are now in confrontation, and this game has just begun.
By the way, Trump also credits the improving economic data to tariffs — no matter how you interpret it, it’s a way to boost his own image.
Market reactions are quite interesting. Some people sense the possibility of rate cuts and are starting to get restless; others are pondering — how will this high-level tug-of-war end? Policy uncertainty often comes with opportunities, those who understand, understand.
What do you think? Will Powell succumb to the pressure this time, or will he stick to his independence? Has the market sentiment shifted? Discuss in the comments! 👇