For the first time ever, Jerome Powell has openly pushed back.
Over the last 12 months, the Federal Reserve Chair stayed silent while facing repeated public criticism from Donald Trump â consistently responding with âno comment.â
đą That silence ended today.
Amid reports of a new criminal probe by federal prosecutors, Powell stated that the âthreat is a consequence of not following the preferences of the President.â
đ„ Markets reacted instantly
US stock futures dropped over -0.5% within minutes
Risk sentiment weakened across global markets
âžïž Macro pressure is rising
The Federal Reserve is widely expected to pause rate cuts again on January 28
With only ~6 months left in his term, Powell appears to be drawing a clear line on Fed independence
â ïž Why this matters
Political pressure + monetary policy = higher volatility
A public Trump vs Powell standoff increases uncertainty
Markets now have to price policy risk, not just economic data
đ Expect sharper moves, faster reactions, and less forgiveness for crowded trades.
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