Trump's Clash with Fed Chair Powell Roils Markets, Stokes Economic Uncertainty

President Donald Trump has intensified his public attacks on Federal Reserve Chair Jerome Powell, demanding immediate interest rate cuts and threatening to fire Powell, moves that have shaken financial markets. Trump’s actions and rhetoric are widely seen as an effort to exert presidential control over the historically independent central bank, raising concerns among economists and market analysts about undermining monetary policy autonomy. Powell has refused to lower rates, maintaining that current policy is needed to combat inflation, despite Trump's claims that inflation is no longer a threat and that high rates risk slowing the economy. Legal debates are ongoing about whether the president has the authority to dismiss the Fed chair without cause, with some warning that a successful challenge could give the White House unprecedented influence over monetary policy. Markets have responded nervously to these developments, with investors increasingly betting that rate cuts will come despite Powell's resistance, aligning more with Trump’s pessimistic economic outlook. Experts warn that eroding the Fed’s independence could destabilize the U.S. economy and echo past episodes where political interference led to damaging inflation and volatility.