In last week’s contribution (April 21), I pointed out that President Donald Trump’s comments regarding the dismissal of Fed Chair Jerome Powell could potentially undermine confidence in the United States.
Indeed, Trump posted on Truth Social on April 21, calling Powell a “major loser” and “Mr. Too Late,” repeatedly demanding interest rate cuts, which resulted in the US market experiencing a triple decline of dollar depreciation, stock market decline, and rising US Treasury yields.
However, when Trump changed direction at a press conference on April 22, saying “I have no intention of firing him. None whatsoever. Never did. The press runs away with things,” Treasury yields reversed to decline and stock prices recovered.
Similar to the pause of reciprocal tariffs on April 9 after just 13 hours, this again demonstrated Trump’s vulnerability to market pressure.
