Trump vs. Powell: The Fed’s Latest Reality Show Drama You Didn’t Ask For

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Ah, President Trump, never shy of turning economic policy into a blockbuster soap opera. Enter Jerome Powell, Federal Reserve Chair and now, apparently, the unwilling star of Trump’s latest Twitter tirade circus. Katerina Simonetti, Morgan Stanley’s senior vice prez and private wealth whisperer, basically calls Trump’s verbal grenades “noise.” You know, the kind that messes up your Zoom call but ultimately doesn’t change your salary.

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Simonetti, in a tune-up for CNBC’s ‘Fast Money’ (because money is always fast, unlike the Fed apparently), reminds us this is nothing new. Back in 2019, Trump was already calling Powell a “golfer who can’t putt.” Which, honestly, is the harshest economy-related golf diss possible. Now, with inflation being as unpredictable as a cat on caffeine, Trump’s ranting about Powell being “too late” on interest rates, and threatening his job like a reality TV judge handing out eliminations.

Yet, Powell? Calm as ever. Turns out, he’s not packing up his Fed badge anytime soon, much to Trump’s chagrin. Jim Cramer, ‘Mad Money’ host and part-time psychic, says Powell’s caught “between a rock and a hard place.” No kidding, Jim, sounds like Monday morning in the stock market.

This week, Trump escalated things on Truth Social (because where else?) yelling Powell’s “termination cannot come fast enough.” Supreme Court firing? Sure, why not add a little chaos to the constitutional mix. But Simonetti’s take is refreshingly boring: all this hubbub is just “noise”—basically, background static nobody needs to freak out over. Fed decisions, she insists, are driven by actual data, not Twitter tantrums or Presidential hissy fits. Shocking, I know.

Oh, and tariffs—they’re the real inflation saboteurs here. Simonetti says Powell’s busy doing his homework on that before making moves. So, don’t expect any rate cuts in 2025. Powell’s in this for the long haul, folks. Morgan Stanley’s crystal ball says so.

Meanwhile, markets have been acting like a cat that just saw a cucumber—spooked and all over the place—thanks to tariff drama and trade tensions with China. Trump’s griping about Powell’s refusal to cut rates while the European Central Bank lowers theirs adds a spicy international subplot.

Tariffs against China have soared to a dizzying 245%, sending risk assets into a downward spiral. Stocks tanked hard midweek, and Bitcoin took the plunge, dipping below $80,000 like it forgot its parachute. It’s since bounced back to above $85,000, but keep your seatbelt fastened.

All in all, the Fed vs. Trump saga continues, starring economic uncertainty, Twitter warfare, and a side of market drama that’s somehow both exhausting and impossible to look away from. 🍿

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2025-04-18 19:12