A real mess brewing in the financial back alleys of America. You thought the crypto rollercoaster was wild?
Huh, what’s happening now makes last year’s market drama look like a kid’s birthday party.
Warpath
Trump’s back in the White House, Bitcoin shot up to $109K faster than we could imagine, and for a hot minute, everyone thought the bull market was back.
But then, tariffs, regulatory foot-dragging, and now, a showdown at the Fed. Suddenly, Bitcoin is clinging to $84K like a gambler down to his last chip.
The mood? Let’s just say, nobody’s popping champagne. Senator Elizabeth Warren, usually the Fed’s toughest critic, is now playing defense.
Standing on the floor of the New York Stock Exchange, she warns, if Chairman Powell can be fired by the president of the United States, it will crash markets in the United States. That’s not just tough talk, that’s a shot across the bow.
She’s tangled with Powell plenty over rates and regulations, but even she knows, you mess with the Fed’s independence, you’re asking for trouble. She compared the idea to a two-bit dictatorship.
Trump’s not pulling punches
On the other hand, Trump’s on Truth Social, throwing haymakers at Powell, calls him always TOO LATE AND WRONG, says his termination cannot come fast enough. Subtle as a sledgehammer, right?
The White House says, this isn’t official policy, but the market’s already spooked. And let’s be real, Trump’s got a history of ignoring advice when he’s got a score to settle.
Let’s talk numbers. During Biden’s stretch, the Fed jacked up rates to fight inflation, then started easing off in 2024.
But Powell’s not in a hurry to cut more, especially with Trump’s tariffs lighting up the global economy like a five-alarm fire. On April 2, Trump slapped a 27% tariff on imports from India, and China shot back with a 34% hit on U.S. goods.
Markets tanked worldwide, S&P 500 down over 10%, Hong Kong off 13%, and crypto? Down 10-20% in a single day.
Bad news?
Now, there’s a 90-day pause on most new tariffs, but when that clock runs out? The market’s sweating bullets.
If Trump actually tries to can Powell, Wall Street’s expecting chaos. Top strategists say firing the Fed chair would be a disaster, plain and simple.
Listen, the Fed’s supposed to be like the referee, calls the shots, doesn’t take sides.
If the White House starts muscling in, investors could lose the little faith in the whole system if there is any.
That’s not just bad for stocks, that’s bad for everyone with a 401(k), a mortgage, or even a piggy bank.
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