Former Fed Chair Powell Warns Political Pressure Could Derail Bull Market

Macro Impact 4
โดย The Motley Fool·Read original
Summary · why it matters

Former Federal Reserve Chair Jerome Powell warned that political pressure on the central bank to cut interest rates amid elevated inflation could undermine its credibility and derail the current bull market. Speaking at a ceremony where he received the John F. Kennedy Profile in Courage Award, Powell highlighted the risk of investor confidence eroding if the Fed succumbs to demands from President Donald Trump to lower rates faster. The warning comes as new Fed Chair Kevin Warsh, who took over on May 22, faces a 4.2% year-over-year rise in the Consumer Price Index in May, the fastest since April 2023. Powell noted that cutting rates while inflation is significantly elevated would totally undermine the central bank's credibility, potentially triggering a risk-off sentiment that pressures equities.

Impact on stocks 3

Artificial Intelligence▼ · 2 stocks
Apple Inc.
AAPL
▼ NegativeMonetaryrelevance

Powell warns political pressure to cut rates could undermine Fed credibility, potentially triggering risk-off sentiment that pressures equities broadly, including Apple.

NVIDIA Corporation
NVDA
▼ NegativeMonetaryrelevance

Powell warns political pressure to cut rates could undermine Fed credibility, potentially triggering risk-off sentiment that pressures equities broadly, including NVIDIA.

Communication Services▼ · 1 stocks
Netflix Inc
NFLX
▼ NegativeMonetaryrelevance

Powell warns political pressure to cut rates could undermine Fed credibility, potentially triggering risk-off sentiment that pressures equities broadly, including Netflix.

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