Wall Street is experiencing significant volatility as President Trump escalates his criticism of Federal Reserve Chairman Jerome Powell.
Trump wants immediate interest rate cuts to stimulate the economy, even threatening to fire Powell on social media before walking back those comments in an Oval Office meeting.
Economic experts, including Moody’s Analytics chief economist Mark Zandi, predict no rate changes at the upcoming May Fed meeting, noting that monetary policy will likely remain unchanged until there’s more clarity on trade wars and economic policy.
Investors are concerned about potential threats to Fed independence, which has historically led to inflation problems.