For the first time, Jerome Powell has publicly drawn a line.

After nearly 12 months of silence amid repeated criticism from Donald Trump — always replying with “no comment” — the Fed Chair finally responded.

📱 What changed?

Amid reports of a new criminal probe by federal prosecutors, Powell stated that the “threat is a consequence of not following the preferences of the President.”

đŸ’„ Immediate market reaction

US stock futures fell over -0.5% within minutes

Global risk sentiment weakened sharply

⏞ Macro pressure building

The Fed is widely expected to pause rate cuts again on January 28

With roughly 6 months left in his term, Powell appears to be defending Fed independence more openly

⚠ Why this matters

Political pressure + monetary policy = higher volatility

A public Trump vs Powell clash raises policy uncertainty

Markets must now price political risk, not just economic data

📉 What to expect Sharper moves. Faster reactions.

And far less forgiveness for crowded trades.

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