President Trump's remarks about the possibility of firing Federal Reserve Chair Jerome Powell led to considerable volatility in the U.S. stock market. Initially, stocks dropped sharply but rebounded after Trump clarified his stance. The S&P 500, Dow Jones Industrial Average, and Nasdaq all experienced modest gains by the end of the day. Trump has criticized the Fed for not lowering interest rates, which could boost borrowing but also risk higher inflation amid potential tariff impacts on the economy. Powell aims to wait for further data before making any decisions.
President Trump stated he has "talked about the concept of firing" Jerome Powell, the Federal Reserve Chair, causing the stock market to fluctuate significantly. While a firing could lead to lower interest rates, it risks diminishing the Fed's capability to control inflation.
Despite prior fears that Trump could fire Powell, the President noted, "I don't rule out anything, but I think it's highly unlikely," which calmed the stock market after initial declines.
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