New York/January 12, 2026 – Donald Trump's recent assaults on Jerome Powell, the Federal Reserve Chair, have reignited concerns on Wall Street regarding the trajectory of the U.S. economy.
In a context where interest rates have surged from virtually zero to between 5.25% and 5.5%, investors are anxious about the possibility of adjustments to monetary policy. Trump has ramped up his rhetoric, even suggesting legal actions against Powell, reflecting dissatisfaction with inflation management and the rising cost of borrowing. Inflation remains a challenge, with figures hitting 5.7%, driving up prices and the costs of goods.
The threat of a criminal indictment against Powell adds a layer of uncertainty, potentially influencing the Federal Reserve's independence. Investment funds and analysts are keeping a close eye on how this could impact future monetary policy, at a time when the U.S. economy strives to stabilize after an era of higher interest rates.
In conclusion, the tensions between Trump and Powell could have significant repercussions, not just on monetary policy but on consumer confidence and the overall investment climate, prompting the financial community to stay alert to developments in this situation.
