Overview

• President Trump has publicly threatened to fire Federal Reserve Chair Jerome Powell, expressing frustration over the Fed's refusal to cut interest rates.
• White House Economic Adviser Kevin Hassett confirmed that the administration is studying legal avenues to remove Powell, though a 90-year-old Supreme Court precedent limits such actions to cases of misconduct or neglect.
• Fed Chair Powell has reaffirmed the Federal Reserve's independence, rejecting political pressure and maintaining that interest rates will remain unchanged at 4.25%-4.5%.
• The Supreme Court is considering a case that could potentially make it easier for the President to dismiss independent agency heads, adding uncertainty to the ongoing conflict.
• Market volatility persists as Trump's tariff policies continue to fuel inflation and economic uncertainty, with Powell ruling out any immediate market intervention.