Overview
- Federal Reserve Chair Jerome Powell warns that elevated U.S. tariffs are driving inflation risks and slowing economic growth.
- President Trump demands Powell’s dismissal after the Fed maintains interest rates, citing concerns over inflation and market stability.
- The European Central Bank cuts its deposit rate to 2.25%, aiming to shield the eurozone from the economic fallout of U.S. trade policies.
- U.S. financial markets experience significant drops, with the S&P 500 and Nasdaq both falling sharply after Powell’s latest remarks.
- The policy divergence between the Fed and ECB widens, reflecting contrasting approaches to mitigating the impact of trade tensions.