Markets Settle After Trump Denies Plans to Oust Fed Chair
Global markets steadied today after U.S. President Donald Trump reassured markets that firing Federal Reserve Chair Jerome Powell was “highly unlikely,” reversing earlier uncertainty triggered by speculation over his removal. Despite Trump’s repeated criticism of Powell’s rate stance, his clarification quelled volatility in bond yields and currency markets.
Investors initially reacted with caution, pulling back from stocks and short‑term Treasury yields, while the U.S. dollar softened on heightened fears over political interference in the Fed. Once Trump issued his statement, markets rebounded, with equities and bond yields retracing earlier losses.
Analysts are now closely watching upcoming Fed speeches and key U.S. data—retail sales, jobless claims, and industrial output—to assess whether monetary policy will shift. The broader question remains whether political pressure may weaken the Fed’s independence.
Meanwhile, tech and chip stocks gained ground amid strong earning reports from Johnson & Johnson and TSMC. European and Asian markets followed suit, supported by solid corporate results and easing tariff concerns.
Adedayo Obadina
Talksocialtalks
