Overview

• Donald Trump has called for Federal Reserve Chair Jerome Powell's dismissal, citing dissatisfaction with his handling of interest rates.
• Powell has warned that cutting rates prematurely could worsen inflation, particularly due to Trump's tariffs on imports.
• Trump's tariffs, including a 145% levy on Chinese goods, remain in place and are cited as a major factor complicating the Fed's dual mandate.
• The Federal Reserve has opted to hold rates steady at 4.25%-4.50%, awaiting clearer economic impacts of the tariffs.
• Powell's recent comments on tariff-related inflation risks triggered a 2% drop in the S&P 500, reflecting market uncertainty.