Trump and Pulte Slam Powell as Inflation Surprise Rocks Markets
Jerome Powell faces mounting political pressure as inflation data defies Fed projections—just as crypto markets position for monetary policy fallout.
Presidential criticism meets market reality
Trump's broadside against the Fed chair echoes through financial circles, accusing Powell of "economic malpractice" while Pulte's crypto-aligned community amplifies the critique. The timing couldn't be worse—traders now question the central bank's grip on monetary policy as inflation proves stickier than predicted.
Digital assets brace for impact
Bitcoin and Ethereum whipsaw on the news, with traders pricing in prolonged higher rates. Powell's dilemma deepens: crush growth or let inflation run? Meanwhile, crypto maximalists smirk—another case of traditional finance playing catch-up while decentralized alternatives flash resilience.
Another day, another central bank forecasting error—almost makes you wonder why we still trust institutions that treat economics like astrology with spreadsheets.
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“Just out: No Inflation!!! ‘Too Late’ must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!” Trump said in a Truth Social post on Wednesday. In an X post quoting the PPI figures, Pulte added “Jerome Powell loses again.”
Markets Bet on Fed Rate Cut as PPI Cools in August
August’s PPI showed a monthly drop of 0.1% while economists were expecting a rise of 0.3%. The inflation reading marks a stark contrast from July’s rise of 0.9%, which was the largest increase in over three years and revised down to 0.7%.
A rate cut is the likely outcome at the September 16-17 Federal Open Market Committee (FOMC) meeting. The market is pricing in an 88% chance of a 25 bps cut and a 12.0% chance of a 50 bps cut, according to CME’s FedWatch tool.
