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Trump budget chief Vought ramps up criticism of Powell, vows investigation into Fed renovations

1. Vought calls for investigation into $2.5 billion Fed renovation project. 2. Accusations against Powell include misleading Congress about renovation costs. 3. Tension between Trump and Powell over interest rate decisions remains high. 4. New board members with ties to the White House oversee the project. 5. Markets expect a potential interest rate cut by the Fed in September.

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FAQ

Why Bearish?

The escalating conflict between Trump and Powell raises uncertainty. Historical examples show political tensions can affect monetary policy and market sentiment.

How important is it?

The article discusses potential threats to Fed leadership, affecting monetary policy. Market sentiment around interest rates and Fed stability could influence S&P 500 movements.

Why Short Term?

Immediate effects expected as markets react to potential interest rate changes. Similar situations in past led to swift market reactions.

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