Trump posts cartoon of himself firing Fed chair Jerome Powell

Donald Trump criticized Federal Reserve Chair Jerome Powell on his Truth Social platform, particularly regarding the Fed's recent decision not to lower interest rates more significantly despite a recent 25 basis point cut.

Trump's post coincides with his campaign to remove Fed Governor Lisa Cook, who has been accused of mortgage fraud, despite no sitting president historically having removed a Fed governor.

The latest interest rate cut was described by Powell as a "risk management" move, and market sentiment has shifted due to strong economic data, leading investors to doubt the potential for further rate reductions.

Investors are encouraged to explore various exchange-traded funds (ETFs) that track the S&P 500 index in light of evolving market conditions.

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Former President Donald Trump recently shared a cartoon depicting himself dismissing Federal Reserve Chair Jerome Powell. The brief post was made on his Truth Social platform and comes in the wake of Trump's ongoing criticism of the central bank, particularly regarding its decision not to lower interest rates. Just last week, the Fed implemented its first rate cut in nearly nine months, attributing the decision to heightened risks facing the labor market.

Additionally, Trump's post aligns with his current efforts to remove Fed Governor Lisa Cook, who faces allegations of mortgage fraud—claims she has firmly denied. Historically, no sitting president has removed a Fed governor.

Although the Fed did introduce an interest rate cut, this reduction of 25 basis points falls significantly short of the broader monetary easing Trump has advocated. Powell characterized the cut as a "risk management" tactic, tempering expectations that this would signal the beginning of an extended easing period.

Market sentiment on Wall Street shifted this week due to strong economic data, which raised doubts about the sustainability of future rate cuts. Investors may want to consider several exchange-traded funds (ETFs) that track the S&P 500 index, including the following: SPY, VOO, IVV, RSP, SSO, UPRO, SH, SDS, and SPXU.

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