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What the ‘fire Powell’ trade could look like as Trump attacks Fed chair again - MarketWatch

1. DJIA fell 2.95% amid fears of Fed independence under threat. 2. President Trump criticized Fed Chair Powell, causing market volatility. 3. Strategists warn of dramatic selloffs if Powell is fired. 4. Investors may lose trust in U.S. monetary policy stability. 5. Market signals indicate higher risk premium for U.S. assets.

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FAQ

Why Very Bearish?

Concerns over Fed independence could lead to major selloffs, reminiscent of past market shocks.

How important is it?

Political threats to Fed's independence could destabilize financial markets and significantly impact DJIA.

Why Short Term?

Immediate market reactions are likely due to political uncertainty affecting confidence.

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