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Trump has talked to former Fed Gov. Kevin Warsh about firing Powell, report says

1. Trump is pressuring the Fed chair Jerome Powell to resign. 2. Former Fed Governor Warsh advises against firing Powell. 3. Powell's term ends in May 2026, increasing political tension. 4. Trump criticizes Powell for not lowering interest rates. 5. Concerns arise over Fed's independence impacting U.S. markets.

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FAQ

Why Bearish?

The ongoing political pressure on Powell may undermine market confidence, similar to past Fed interferences.

How important is it?

Political moves regarding the Fed highly influence market psychology and interest rate expectations.

Why Short Term?

Immediate concerns regarding Powell's leadership could destabilize markets, as seen in 2018.

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