🔥🔥Trump said he is angry with Powell. He said the Federal Reserve spent too much money on its building, about 2.5 billion more than planned. He also said interest rates are still too high and the economy needs strong growth. Trump warned that if rates do not come down a lot, he may choose a new Fed chairman next time.
Powell is still the chairman for a few more months and people think he is under a lot of pressure. The market first thought the Fed was soft because it cut rates by 25 basis points, but later many people said this rate cut still looks “hawkish” because future cuts may be fewer than expected.
Because of all this news and political talking, US Treasury yields went up again. Yields are staying high because people are worried about inflation, risk, and the independence of the Federal Reserve. Some investors think long-term yields can go even higher if this continues.
In short, the market is confused. Rate-cut hopes are now weaker, political pressure is stronger, and bond yields are still high. People are also watching what will happen when Powell’s term ends in 2026. No one is sure whether the market will be happy or scared at that time.
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