The post Trump’s push to oust Powell triggers market fears of inflation appeared on BitcoinEthereumNews.com.

President Donald Trump has reignited efforts to remove Federal Reserve Chair Jerome Powell, triggering fresh anxiety across financial markets. The renewed push has raised fears that political interference at the US central bank could spark long-term inflation and disrupt the economy. President Trump has consistently lashed out at Powell for not cutting rates repeatedly since he returned to the White House in January. His recent comments have gone even further, suggesting that Powell should step down and suggesting that he has acted to sabotage the US economy by keeping interest rates too high. Trump said that Powell’s resignation “would be a great thing” as he expressed frustration with the Fed’s refusal to lower rates, even as signals of weakening global growth are picking up.  And while the president does not have the legal power to remove the Fed chair over policy disputes, his aggressive public pressure campaign has prompted speculation about a more sustained effort to meddle with the traditionally independent institution. Trump’s repeated attacks have undermined investor confidence and left many worried that a politicized Fed might lose the resolve to fight inflation in favor of providing a temporary economic boost. Markets hedge against inflation fears The financial markets have answered with one clear statement: investors are bracing for higher inflation. The yield on longer-dated US Treasury bonds has risen, indicating expectations that future interest rates will rise as inflation starts to creep up. However, analysts caution that if Trump persuades the central bank to cut rates too soon, it could trigger an overheating economy. “If markets believe that a politically-captured Fed will lower rates to stimulate growth regardless of economic consequences, long-term inflation expectations will rise, causing the curve to steepen,” said Guy LeBas, chief fixed income strategist at asset manager Janney Capital Management. It was difficult to…

---

Filed under: News - @ July 16, 2025 12:25 am