Story perspectives

Trump Backs Powell as S&P Surges on Rate Cut Hopes

6/28/2025

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Summary

Story summary

President Trump quashed rumors of replacing Fed Chair Jerome Powell, even as he hinted at possible successors. Meanwhile, the S&P 500 soared close to record highs, fueled by a ceasefire between Israel and Iran, reduced tariffs, and growing hopes for interest rate cuts. Fed officials hinted at a potential rate cut this fall, alleviating inflation worries linked to Trump's tariffs.

History

Historical Context

The Federal Reserve's interest rate hikes in 2018, aimed at curbing inflation, sparked criticism from President Trump towards Fed Chair Jerome Powell, highlighting tensions between fiscal policy and executive influence. This dynamic reflects historical patterns where central bank decisions significantly impact economic growth, as seen in past strategies to stimulate recovery during downturns, underscoring the ongoing relevance of monetary policy in shaping economic landscapes.

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Story summary

President Trump quashed rumors of replacing Fed Chair Jerome Powell, even as he hinted at possible successors. Meanwhile, the S&P 500 soared close to record highs, fueled by a ceasefire between Israel and Iran, reduced tariffs, and growing hopes for interest rate cuts. Fed officials hinted at a potential rate cut this fall, alleviating inflation worries linked to Trump's tariffs.

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