Trump vs. Powell
President Donald Trump’s ongoing feud with the Federal Reserve has reached a boiling point. As economic uncertainty grows, investors are watching closely. And many are taking action to shield their savings. With gold soaring to record highs, the message is clear: in a time of political and financial instability, physical gold is a proven safe haven.
At the heart of the turmoil is Trump’s frustration with Federal Reserve Chair Jerome Powell. Trump is exploring whether he can fire Powell. Doing so would be unprecedented in American history. No sitting president has ever removed a Fed Chair before. But Trump’s dissatisfaction is no secret. After Powell signaled the Fed would hold interest rates steady amid trade tensions, Trump posted on social media: “Powell’s termination cannot come fast enough.”1
Lower Rates to Spur Growth
Trump believes that Powell and the Fed are standing in the way of economic growth. He says we need lower interest rates to offset the impact of his disruptive global tariff policies. According to Trump, energy costs are down, inflation is “virtually nonexistent,” and the Fed is “too late and wrong” in its decisions. He claims that Powell’s reluctance to cut rates faster is either politically motivated or simply misguided.
How Lower Rates Could Help
Trump’s argument is straight forward. Lower rates mean cheaper borrowing for cars, homes, and businesses. That stimulates growth and helps avoid recession. He’s pointed out that Europe has already lowered rates seven times. Trump warned that if the Fed doesn’t act soon, the U.S. economy faces a slowdown.
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Market Reaction
Financial markets are already betting that rate cuts are coming. Analysts expect the Fed to cut rates at least once in June. They predict a fourth cut by the end of the year if unemployment starts rising. But the political drama is making investors nervous. Stocks opened sharply lower after Trump’s comments about firing Powell. The S&P 500 fell more than 2% and the Dow Jones dropped 750 points.3
Experts Warn of Chaos
While some believe Trump might not follow through on removing Powell, the damage has already been done. Bond yields fell as investors scrambled for safety. But that safety may be short-lived. Mark Zandi is chief economist at Moody’s Analytics. He warned that if Trump tries to remove Powell, the bond market could suffer a massive sell-off and long-term interest rates would “go skyward.” As he put it, “It’s a really bad idea. A cornerstone of a well-functioning economy like our own is a well-functioning central bank. If we lose that, we lose our economy’s secret sauce.”4
Gold as Safe Haven
This has all fueled a dramatic move into gold. As the chaos deepened, gold surged past $3,400 an ounce, a new record. As the U.S. dollar plunges to a three-year low and fears about Fed independence grow, gold is showing itself to be the go-to asset in uncertain times.
Powell Holds the Line
Even as Powell maintains that the Fed’s policy decisions are data-driven, Trump continues to claim the central bank is harming the economy. Powell has insisted that the Fed will wait for more data before making changes to interest rates. He holds that current market turbulence is a result of shifting trade policy. That it is not a sign of economic distress that requires intervention. There is no “Fed put” where the bank would jump in if the market crashes. He emphasized that law protects Fed independence and only Congress can change it.
Why an Independent Fed
The independence of the Fed has long been considered vital to maintaining stable prices and maximum employment. The Fed has historically helped keep inflation low by making decisions based on long-term economic evidence. Not by yielding to short-term political pressure. But Trump argues that because the Fed is a government institution, it should be accountable to elected leaders. Especially if people see its policies as damaging economic growth.
The Fed’s Missteps
This isn’t the first time the Fed has been out of step. The central bank first called the inflation from massive pandemic spending “transitory.” Then, they changed their approach and raised rates sharply, which hurt the economy. Some analysts think Fed decisions are based on backward-looking data—data that is often revised.
Conclusion
Trump is pushing back, while Powell is holding firm. This clash between politics and monetary policy is causing major volatility. And no matter how it plays out, one thing is clear: uncertainty is here to stay.
In this chaotic environment, protecting the value of your savings is more important than ever. That’s where American Hartford Gold can help. By holding physical gold in a Gold IRA, you can hedge against inflation, economic slowdown, and the unpredictable outcomes of political infighting. Call American Hartford Gold at 800-462-0071 to learn how to secure your future with real, tangible wealth.
Notes
1. https://www.forbes.com/sites/digital-assets/2025/04/21/bitcoin-braced-for-apocalyptic-price-shock-after-white-house-confirms-fed-bombshell/
2. https://scontent-lax3-2.xx.fbcdn.net/v/t39.30808-6/492016861_1047253573936087_7125728773442541085_n.jpg?_nc_cat=101&ccb=1-7&_nc_sid=127cfc&_nc_ohc=ApFd9ak92YwQ7kNvwEAz79I&_nc_oc=AdnBfOpQGU8NURJNqK0wC–MUgMQn37uJhon3oq8io8PL3khLdoiKtqBJirxq_ZlxlytcBu6S3dlt57rLhlMgWuE&_nc_zt=23&_nc_ht=scontent-lax3-2.xx&_nc_gid=nMwiNjQhZOfCOxGsiaAQJA&oh=00_AfEVkpLHjj_MDZtpGr9IHUrXEF13Om8DMOCwMIbqTQGgpA&oe=680C6BD7
3. https://www.nbcnews.com/business/economy/trump-taunts-jerome-powell-waiting-long-cut-rates-rcna202123
4. https://www.nbcnews.com/business/economy/trump-taunts-jerome-powell-waiting-long-cut-rates-rcna202123
