Ed Luce: If Trump Really Wants To Fire Powell, Then We Ain’t Seen Nothing Yet in Terms of Market Turmoil

EXCERPT:

LUCE: “Dollar is falling when other countries are cutting interest rates. So, it should be rising. Why is the dollar falling? The dollar is falling because people, investors are losing trust in the full faith and credit of the U.S. government under Donald Trump. And if he then adds into this tariff war, which is creating inflation, which of course means you can’t cut interest rates because that’s even more inflationary, if Trump is adding into this a threat to the independence of the Fed, the oldest independent central bank in the world going back to 1913, an absolute mainstay of the dollar as the global reserve currency, if Trump in the middle of this is going to end the independence of the Fed, he’s going to — he’s going to end the dollar as global reserve currency status. I mean, it’s that — it’s that significant, these threats that he’s issuing. So, I think, amongst sort of all the market turmoil over the tariffs since April 2nd, since he had his liberation day, the Fed hasn’t entered the mix until yesterday. And we’re already seeing a flight from the dollar. If he really means this, and I think The Wall Street Journal is correct that he’s been talking about firing Powell for weeks and months, if he really means this, then we ain't seen nothing yet in terms of market turmoil."