Markets on Edge: Trump Threatens Powell, and Stocks React with Panic

U.S. financial markets are on edge after Donald Trump suggested he may remove Fed Chair Jerome Powell — a move that, according to Krishna Guha of Evercore ISI, could have devastating consequences for both stocks and bonds.

🔹 Markets Drop Sharply — Investors Are Backing Powell As soon as Trump launched another verbal attack on Powell on Monday morning, markets plunged:

🔻 Dow Jones: –2.4%

🔻 S&P 500: –2.5%

🔻 Nasdaq: –2.9% Krishna Guha warned: “If Trump were to actually fire Powell, markets would likely react violently — bond yields would spike, the dollar would weaken, and stocks would sell off hard.”

🔹 Guha Urges: Let Powell Finish His Term Trump has been criticizing Powell for months, pushing him to lower interest rates. But Powell has refused to rush into action. Reports from the White House suggest that Trump’s team is exploring ways to remove Powell from office. However, Powell believes the President doesn’t have the authority to fire him. Instead, Trump might influence markets by hinting at who he would appoint as the next Fed chair once Powell’s term ends next year — creating what analysts call a "shadow Fed chair." According to prediction platform Polymarket, 58% now believe Powell will be gone by 2025. Guha advises caution: “The administration should take a deep breath and let Powell finish his term. That’s the best way to anchor inflation expectations, keep bond yields under control, and create room for rate cuts without market chaos.”

🔹 Turbulent Week Ahead for U.S. Markets Volatility continues — this week again looks tough for the Dow Jones, Nasdaq, and S&P 500. Several factors are in play: 🔹 Ongoing tariff negotiations

🔹 Earnings reports from major corporations

🔹 Trump’s stance on trade and monetary policy All eyes are on Tesla and Alphabet, two of the market’s former titans that have seen steep declines this year:

🔻 Alphabet: –20%

🔻 Tesla: –40% Their financial results could change investor sentiment. Meanwhile, the market is listening closely for any signals from Trump that a tariff deal is close. Even a small comment could trigger buying or more panic selling, depending on the tone.

#TRUMP , #JeromePowell , #FederalReserve , #StockMarketCrash , #WallStreetNews

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