Overview

• President Trump renewed public attacks on Jerome Powell, calling him a “cabeza hueca” and predicting he will leave in eight months despite his term running until May 2026.
• Treasury Secretary Scott Bessent said Powell need not resign now and urged an internal review of the Fed’s non-monetary operations to strengthen its oversight.
• Bloomberg’s report of Trump considering Powell’s firing has driven spikes in 30-year Treasury yields, a fall in the dollar and losses on Wall Street.
• U.S. law allows removal of a Fed chair only for misconduct, underscoring the slim likelihood of a presidential ouster.
• Analysts warn that any erosion of Fed independence could weaken the dollar’s global standing and redirect capital toward emerging markets like Argentina.