Right now, thereβs serious tension between Trump vs Fed (former President Trump and the Federal Reserve). Over the past few weeks, Trump has been publicly criticizing Fed Chair Jerome Powell β calling him βa loserβ and blaming him for the recent market downturn.
Trumpβs main complaint? He thinks interest rates are too high and that the Fed is hurting the economy by not cutting them fast enough. Heβs even hinted at trying to fire Powell, which is a big deal because the Fed is supposed to be independent β not controlled by the White House.
This kind of political pressure is making investors really nervous. Itβs creating doubts about the Fedβs ability to make decisions without interference, and thatβs shaking confidence in the U.S. financial system.
To make it worse, Trumpβs also ramping up tariffs and trade tensions, which is adding more stress to the markets. So yeah, between the Fed drama and global trade chaos, Wall Streetβs on edge.