Overview

• President Trump publicly called for the immediate dismissal of Federal Reserve Chair Jerome Powell, criticizing his economic policies and reports as a 'complete disaster.'
• Jerome Powell reaffirmed the Federal Reserve's decision to maintain current interest rates, citing concerns over inflation and economic slowdown from elevated tariffs.
• Powell defended the Fed's legal independence, emphasizing its commitment to operate without political influence despite mounting pressure from the administration.
• The European Central Bank announced its seventh rate cut since 2023, lowering its deposit rate to 2.25% to support eurozone growth amid trade-related challenges.
• Financial markets reacted sharply to Powell’s warnings, with major U.S. stock indexes experiencing significant declines as investors grappled with heightened uncertainty.