Wall Street’s Biggest Showdown: Trump vs. Powell Likely Decided

Volatility has dominated Wall Street in the first seven months of 2025, with President Donald Trump's tariff announcements triggering historic market swings. The S&P 500 suffered its fifth-worst two-day drop since 1950, while the Dow and Nasdaq plunged into correction and bear market territory, respectively.

A dramatic reversal followed as TRUMP paused reciprocal tariffs, fueling a 25% S&P 500 surge - marking just the sixth such three-month gain in history. Despite new market highs, the underlying power struggle between Trump and Fed Chair Jerome Powell over interest rate policy remains unresolved.

The central bank's independence faces its sternest test yet as political pressure mounts for rate cuts. This institutional clash may have already been decided - not through public confrontation, but through the Fed's quiet adherence to its inflation mandate amidst extraordinary economic conditions.