Trump Escalates Fed Feud as Trade Tensions Mount

President Trump's administration has reignited its battle with Federal Reserve Chair Jerome Powell, with top economic adviser Kevin Hassett asserting the president holds legal authority to remove the central bank chief. The threat comes amid Trump's persistent criticism of Powell's interest rate policies, which he claims are stifling U.S. economic dominance.

The WHITE House has simultaneously launched fresh trade offensives against key allies, imposing sweeping tariffs on Canada, the EU, Mexico and Brazil. This dual-front economic strategy creates unprecedented uncertainty in global markets, with investors weighing the implications of both monetary policy instability and escalating trade wars.

While TRUMP has denied immediate plans to dismiss Powell, the administration has intensified scrutiny of Fed operations, including questioning the justification for a $2.5 billion headquarters renovation. The moves suggest a broader challenge to central bank independence that could reverberate through financial markets.