Wall Street’s great voices look at Trump’s quarrel with Powell

President Donald Trump again castigated the president of the federal reserve Jerome Powell for having reduced interest rates too slowly and warned that he could withdraw from his post. The last threat to the central bank independence sent more shock waves across the markets.

Stacking these fresh concerns in addition to prices, the trade “SELL America” ​​was in effect on Monday with American actions, the Treasury and the Dollar.

The S&P 500 fell by 2.4%, the dollar has slipped to its lowest level since 2022, the 30 -year -old treasure yield increased by approximately 10 base points to 4.9%, and gold hit $ 3,500 for $ 3,500 while investors accumulated in Haven assets.

Here’s what Wall Street’s great voices say about Trump’s quarrel with Powell.

Jeremy Siegel: Powell could be “ scapegoat ” from Trump

If the Fed does not reduce rates in June, Powell “may not only deepen a potential slowdown, but also to become the scapegoat,” said Jeremy Siegel in his weekly commentary of Wisdomtree on Monday.

The finance professor known as “Wizard of Wharton” said that he expected the president to “blame more and more” Powell for the disadvantages that materialize Trump policies “.

Siegel added that Powell “can be technically sure in his position, but that does not mean that he is isolated from blame”.

Mark Haefele: Faith in the Fed is in danger

By removing Powell before the end of his mandate in May 2026 “could question the central bank’s ability to set interest rates without political interference, and therefore prices stability prospects,” said Mark Haefele, the director of investments for Global Wealth Management in UBS, in a note on Tuesday.

Haefele and his team said that the markets are “likely to be sensitive” to any sign that the White House intends to expel Powell or “replace it with a more” malleable “” candidate “once his mandate ends.

Liz Ann Probe: Powell’s withdrawal could send higher rates

Avoiding Powell and the installation of a more compliant FED chief would undermine the vital independence of the central bank, said Liz Ann Sonders on Monday, the Charles Schwab’s investment strategist, on “Market on Close” on the Schwab network.

In this scenario, “any FED decision to start preventively to relieve policy in an aggressive manner” which does not correspond to its mandate “may not have the planned effect to strengthen growth or strengthen confidence,” said polls.

This could even push long-term obligations to long-term yields, “overcome the purpose of that,” she warned.

Jim Reid: Powell colleagues could revolt

Powell has a big word to say in Fed’s decisions, but monetary policy is decided by the majority vote “so that the abolition of Powell could lead to an increase in the repression of other members against the pressure on the Fed to issue an easier policy,” said Jim Reid of Deutsche Bank in a Tuesday post.

Reid and his team added that investors fear that the United States will lose its credibility as a country with an independent central bank whose monetary policy is not dictated by politics.

Nouriel Roubini: Trump threats are a “clean goal”

“Trump is shooting with this speech on the dismissal of Powell,” said Nouriel Roubini, emeritus professor of emeritus on Nyu Stern on Monday, known as “Dr Doom”.

Roubini called it “a repeated objective” because the chatter struck the shares, the obligations, the credit differences and the dollar. He said that even if Trump managed to dismiss Powell, it would be a “totally pyrrhic victory, because the result would be a count of inflation expectations and higher bond yields”.

If Trump plans a Powell scapegoat for higher inflation and slower growth, it is “not clear that this clumsy game of blame will even fly with the base of Maga whose feeling is heading south, not to mention the financial markets,” said Roubini.

Paul Krugman: Trump makes the work of Powell harder

“What makes Trump try to intimidate the particularly disturbing Fed is the fact that the Fed will soon have to face the stagflationist crisis that Trump has created,” Krugman said about his substitution.

The former MIT and Princeton teacher and a Nobel Prize winner said Powell will soon have to choose between rates to combat inflation, or cut them to combat the recession.

The president’s threats complicated this decision, said Krugman. “Trump has further aggravated Powell’s dilemma with his intimidation attempt, because a drop in rate would be considered by many as a sign that Powell famous to avoid being dismissed.”

Michael Every: Trump is not the only one to question the Fed

Trump’s criticism of Powell as “Mr. Too Late” and a “big loser” represents a “comic-book punch” on the Fed chair, said Michael each of Rabobank in a note on Tuesday.

But the president is not the only person frustrated by the Fed, each continues.

“To be honest, Trump says many of the same things as many of those who cover the Fed on the markets as – just less politely politely; and very inappropriate in the eyes of these same commentators,” said the global Rabobank strategist.

Peter Schiff: Trump wants a “faithful soldier”

Peter Schiff, chief economist for Euro Pacific Asset Management, said what Trump could look for in Powell’s successor.

Trump “will probably name the most dominant replacement forever presiding over the Fed,” he said in a weekend x post.

The choice of the president will be a “loyal soldier ready to sacrifice the dollar and to create as much inflation as necessary to monetize the explosive debt to maintain artificially low interest rates”, added Schiff.