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S&P To Crash 50%? Trump Calls Jerome Powell “Dumbest”

1. Trump blasted Fed Chair Powell as rates remain steady at 4.25%-4.5%. 2. Potential Fed rate cuts could trigger a second wave of inflation. 3. Historical precedent shows the 1970s experience could repeat itself. 4. Tariffs and policies may provoke persistent inflation and higher rates. 5. A significant S&P 500 decline could wipe out over $23 trillion in value.

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FAQ

Why Very Bearish?

The article highlights political risks affecting Fed policy, echoing historical downturns, which could harm valuations.

How important is it?

The discussion around U.S. monetary policy directly impacts investor sentiment and S&P 500 valuations.

Why Long Term?

Inflationary pressures and potential rate hikes can lead to prolonged bearish conditions, reminiscent of the 1970s.

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