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    Trump Accuses Former House Speaker Of Making ‘Dumbest’ Choice In Years

    By
    Madeleine Jackson
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    1
    Photo via Gage Skidmore Flickr

    President-elect Donald Trump blindsided former House Speaker Kevin McCarthy (R-Calif.) on Sunday calling the debt ceiling suspension approved in 2023 as “one of the dumbest political decisions made in years.”

    However, while targeting the former top House GOP lawmaker, Trump leveled the criticism by describing McCarthy as a friend and a good person.

    “The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine, from this past September of the Biden Administration, to June of the Trump Administration, will go down as one of the dumbest political decisions made in years. There was no reason to do it – NOTHING WAS GAINED, and we got nothing for it – A major reason why that Speakership was lost. It was Biden’s problem, not ours. Now it becomes ours,” Trump declared in the post. 

    “I call it ‘1929’ because the Democrats don’t care what our Country may be forced into. In fact, they would prefer ‘Depression’ as long as it hurt the Republican Party. The Democrats must be forced to take a vote on this treacherous issue NOW, during the Biden Administration, and not in June. They should be blamed for this potential disaster, not the Republicans!” he added.

    A deal passed by Congress and signed by President Joe Biden last year suspended the debt limit through Jan. 1, 2025, but Trump has been calling for the ceiling to be increased before he takes office. 

    “In June 2023, the Fiscal Responsibility Act of 2023 was enacted, suspending the debt limit through January 1, 2025.  On January 2, 2025, the new debt limit will be established at the amount of outstanding debt subject to the statutory limit at the end of the previous day,” Treasury Sec. Janet Yellen wrote in a recent letter to congressional leaders. “Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures. I respectfully urge Congress to act to protect the full faith and credit of the United States.”

    Responding to Trump’s post about McCarthy, Rep. Chip Roy (R-Texas) wrote in a post on X, “Sadly, this bad debt ceiling extension was opposed by only 71 House Republicans 18 months ago (notably opposed by virtually the entire @freedomcaucus).”

    “Democrats did vote on the recent debt ceiling increase proposal on 12/19: 197-2 against it (their price to support is very high – more spending/taxes),” Roy added. “Yes, we can & should address the debt ceiling – thru reconciliation in January with mostly GOP votes – but with real, meaningful spending cuts.”

    Trump Puts China On Notice With First Wave Of Tariffs

    By
    Madeleine Jackson
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    3
    By Dan Scavino - https://twitter.com/Scavino45/status/1069069893549490176, Public Domain, https://commons.wikimedia.org/w/index.php?curid=80055244

    President Donald Trump announced he is planning a 10 percent tariff on Chinese imports on Feb. 1 over the country’s role in fentanyl trafficking. 

    “We’re talking about a tariff of 10% on China, based on the fact that they’re sending fentanyl to Mexico and Canada,” Trump told reporters at the White House on Tuesday. “Probably February 1st is the date we’re looking at.” 

    When asked about a conversation he had with Chinese President Xi Jinping ahead of his inauguration this week, Trump added that “We didn’t talk too much about tariffs other than he knows where I stand.” 

    During his campaign, Trump threatened tariffs as high as 60 percent on goods from China. He recently pledged on Truth Social to create an “External Revenue Service” to “collect our Tariffs, Duties, and all Revenue that come from Foreign sources.” 

    At a press briefing Wednesday, Chinese foreign ministry spokesperson Mao Ning told reporters that “We always believe that there is no winner in a trade war or tariff war,” according to Reuters. 

    In late November, Trump wrote on his Truth Social account that he would implement such tariffs on Jan. 20 as one of his first Executive Orders and that the tariffs “will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” 

    Those promised tariffs haven’t gone into effect yet, but on Monday, Trump did sign an executive order titled “America First Trade Policy.” 

    “The Secretary of Commerce, in consultation with the Secretary of the Treasury and the United States Trade Representative, shall investigate the causes of our country’s large and persistent annual trade deficits in goods, as well as the economic and national security implications and risks resulting from such deficits, and recommend appropriate measures, such as a global supplemental tariff or other policies, to remedy such deficits,” the order says. 

    “The Secretary of the Treasury, in consultation with the Secretary of Commerce and the Secretary of Homeland Security, shall investigate the feasibility of establishing and recommend the best methods for designing, building, and implementing an External Revenue Service (ERS) to collect tariffs, duties, and other foreign trade-related revenues,” it adds. 

    On Wednesday, President Donald Trump in a Truth Social post said he will institute tariffs on Russia if the yearslong invasion of Ukraine doesn’t come to an end.

    Read Trump’s lengthy statement below:

    I love the Russian people, and always had a very good relationship with President Putin – and this despite the Radical Left’s Russia, Russia, Russia HOAX,” he said, referring to allegations from Sen. Adam Schiff (D-Calif.) and others that he colluded with Moscow to defeat Hillary Clinton.

    “We must never forget that Russia helped us win the Second World War, losing almost 60,000,000 lives in the process. All of that being said, I’m going to do Russia, whose Economy is failing, and President Putin, a very big FAVOR. Settle now, and STOP this ridiculous War! IT’S ONLY GOING TO GET WORSE,” Trump wrote.

    “If we don’t make a “deal,” and soon, I have no other choice but to put high levels of Taxes, Tariffs, and Sanctions on anything being sold by Russia to the United States, and various other participating countries. Let’s get this war, which never would have started if I were President, over with.”

    ‘We can do it the easy way, or the hard way – and the easy way is always better. It’s time to “MAKE A DEAL.” NO MORE LIVES SHOULD BE LOST!!!”

    Trump Announces One Month Delay on Mexico, Canada Tariffs

    By
    Madeleine Jackson
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    0
    By The White House - https://www.flickr.com/photos/202101414@N05/54325633746/, Public Domain, https://commons.wikimedia.org/w/index.php?curid=159707159

    Just in…

    President Trump on Wednesday announced a one-month exemption on tariffs against Canada and Mexico for cars following a meeting with the three major U.S. automakers.

    Trump spoke with the leaders of the “Big Three” automakers — Ford, General Motors and Stellantis — on the heels of imposing 25 percent tariffs on all imports from Mexico and Canada on Tuesday.

    Following those discussions, Trump said in a statement read by press secretary Karoline Leavitt that the administration is giving a one-month exemption for automakers associated with the U.S.-Mexico-Canada trade agreement (USMCA), which Trump signed during his first term. 

    The exemption would apply to Ford, General Motors and Stellantis, as well as companies with production facilities in the three North American countries.

    Asked if there would be any other carveouts to come, Leavitt said Trump is “open to hearing about additional exemptions.”

    Trump on Tuesday imposed 25 percent tariffs on imports from Canada and Mexico, as well as an additional 10 percent tariff on Chinese goods. He cited frustration over the flow of fentanyl into the United States, though experts have noted relatively little fentanyl enters the country through the northern border.

    This is a breaking news story. Please check back for updates.

    US Takes 10% Stake In Intel Under Trump To Strengthen Chip Production

    By
    Patrick Houck
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    1
    Donald Trump via Gage Skidmore Flickr

    A public-private deal aims to bring microchip manufacturing back to American soil — and deliver taxpayer returns in the process.

    A Strategic Bet on Semiconductors

    President Donald Trump announced Friday that chipmaker Intel agreed to give the U.S. government a 9.9% equity stake, valued at $8.9 billion. The move, the first of its kind under the CHIPS and Science Act, is intended to strengthen domestic semiconductor capacity and ensure that federal subsidies come with direct returns for taxpayers.

    “They’ve agreed to do it, and I think it’s a great deal for them,” Trump told reporters during a briefing. The agreement follows internal administration discussions about using existing Commerce Department funding to acquire a stake in Intel, an effort confirmed earlier in the week by Commerce Secretary Howard Lutnick.

    The stake is expected to be funded through the CHIPS Act and the Department of Defense’s Secure Enclave program. It will be a passive investment, meaning the government will not receive board seats, governance rights, or special access to information.

    Intel Under Scrutiny

    Trump also shed light on how the agreement came about — including a conversation with Intel CEO Lip-Bu Tan, whose background had drawn criticism from Capitol Hill.

    Earlier this month, Sen. Tom Cotton (R-AR) raised alarms over Tan’s past leadership of Cadence Design Systems, which in 2008 pleaded guilty to illegally exporting chip design software to a Chinese military university. Tan’s investments in China-based firms had also raised national security concerns.

    “I said, ‘Well that’s right, he should resign,’” Trump said. “And he came in, he saw me, we talked for a while. I liked him a lot. I thought he was very good. I thought he was somewhat a victim, but, you know, nobody’s a total victim, I guess.”

    Following their meeting, Trump floated the idea that Intel should offer a 10% equity share to the U.S. government.

    “He said, ‘I would consider that,’” Trump recalled. “Intel has been left behind, as you know, compared to [Nvidia CEO] Jensen [Huang] and some of our friends.”

    Commerce: “We Can’t Rely on Taiwan”

    Commerce Secretary Lutnick emphasized that the deal has more to do with national security than boardroom politics. In an interview on CNBC’s Squawk Box, Lutnick pointed out that Taiwan, which manufactures over 90% of the world’s most advanced semiconductors, sits just 80 miles from China.

    “We cannot rely on Taiwan, which is 9,500 miles away from us and only 80 miles from China,” Lutnick said. “So, you can’t have 99 percent of leading-edge chips made in Taiwan. We want to make them here.”

    He noted that the administration wants to ensure that U.S. companies are capable of producing next-generation chip nodes domestically.

    “One of those pieces is, it would be lovely to have Intel be capable of making a U.S. node or a U.S. transistor — driving that in America,” Lutnick added.

    A Rare Bipartisan Signal

    The move drew support across ideological lines, with Sen. Bernie Sanders (I-VT) praising the basic premise: that if the federal government is handing out billions in subsidies, the public should see a share of the profits.

    “No. Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return,” Sanders said. “If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment.”

    Not Everyone on Board

    Some conservatives pushed back against the concept of government equity stakes in private corporations.

    Sen. Rand Paul (R-KY) called the proposal a “terrible” precedent.

    “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism?” Paul wrote in a post on X.

    Despite the criticism, the administration has defended the agreement as a narrowly targeted investment — not a takeover — intended to align taxpayer contributions with long-term national and economic security.

    Looking Ahead

    The Intel stake marks a sharp departure from traditional federal industrial policy. Rather than simply issuing grants or tax breaks, the administration is pursuing a more transactional model: public money in, public equity out.

    For the Trump administration, the goal is clear — to use government leverage to secure America’s position in next-generation chip manufacturing and reduce dependence on overseas supply chains.

    READ NEXT: When Loyalty Breaks: Hegseth Moves Against Key Military Leader

    Obama’s Shadow Agenda Ends Here. Biden was just the puppet — Obama pulled the strings. Now he’s desperate for a comeback in 2026. It’s up to us to stop him cold and save the House. [DONATE NOW TO PROTECT THE MAJORITY]

    Trump Says He Aims To Suspend Gas Tax

    By
    Madeleine Jackson
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    2

    President Donald Trump said Monday that he supports temporarily suspending the federal gas tax as Americans face soaring fuel prices ahead of the busy Memorial Day travel season.

    “I think it’s a great idea,” Trump said during a phone interview with CBS News. “Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in.”

    Gas prices have surged more than 50% since the start of the Iran war on Feb. 28, with the national average climbing above $4.52 per gallon on Sunday, according to AAA. Analysts warn prices could remain elevated as tensions in the Middle East continue and Iran blocks access to the Strait of Hormuz, a key global oil shipping route.

    The federal gas tax currently adds 18.4 cents per gallon to gasoline prices and 24.4 cents per gallon to diesel fuel. However, suspending the tax would require approval from Congress and could cost the federal government roughly $500 million per week in lost revenue.

    Several Democrat lawmakers have already introduced legislation aimed at either lowering or temporarily suspending the federal gas tax to provide relief to consumers struggling with higher prices at the pump.

    Revenue generated by the federal gas tax funds the Highway Trust Fund, which supports road construction and repairs, along with other transportation and transit projects across the country.

    The push for relief comes as AAA projects a record-breaking Memorial Day travel weekend. According to the organization, roughly 45 million Americans are expected to travel at least 50 miles from home between May 21 and May 25, slightly surpassing last year’s total.

    Of those travelers, an estimated 39.1 million are expected to drive to their destinations despite fuel prices reaching their highest levels since 2022. AAA also warned drivers to expect the heaviest traffic congestion on May 21 and 22 between 3 p.m. and 6 p.m., as well as during the afternoon of May 25. Sunday is expected to be the lightest travel day of the holiday weekend.

    Meanwhile, about 3.66 million Americans are expected to fly during the holiday period, accounting for roughly 8% of all travelers. AAA noted that round-trip domestic airfare is currently about 6% cheaper than it was last year.

    However, Trump’s idea to pause the federal gas tax faces an uphill climb in Congress.

    While rank-and-file GOP lawmakers are eager to get Trump’s backing on any plan to address cost-of-living concerns in a midterm election year, top Republicans are hesitant to endorse the gas tax idea, according to reporting from The Hill.

    Trump’s proposal for a federal gas tax holiday got some initial enthusiasm Monday, with Sen. Josh Hawley (R-Mo.) and Rep. Anna Paulina Luna (R-Fla.) quickly saying they would introduce legislation to suspend the 18.4-cent-per-gallon federal tax.

    However, Senate Majority Leader John Thune (R-S.D.) pointed out that it supports the Highway Trust Fund, which finances the Interstate Highway System and other surface transportation systems. 

    “The best way to get gas prices to normalize in my view is to get the strait open,” Thune said Monday, referring to the Strait of Hormuz. “We do have a Highway Trust Fund and it does perform an important service in making sure that we’ve got highways and roadways across our country that are serviceable.”

    We don’t have to guess what the Democrats will do if they win in November; they already told us. Fill out this quick survey and let the President know if he can count on you.

    Wall Street Journal Board Urges Potential Trump Impeachment

    By
    Madeleine Jackson
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    2
    Image via Gage Skidmore Flickr

    Yikes…

    In a column published late Friday, a member of the Wall Street Journal editorial board claimed it would be “desirable” to subject Donald Trump to a third impeachment.

    According to longtime columnist Holman W. Jenkins Jr., Trump’s on-again, off-again tariff threats almost makes it appear he wants to be impeached, with Jenkins writing, “A future Trump impeachment seemed all but guaranteed by last Wednesday morning. It seems only slightly less likely now. It may even be desirable to restore America’s standing with creditors and trade partners.”

    Read more from the report:

    As he sees it, the president’s last great achievement was being re-elected in 2024, and the damage he has been creating since then belies his promise of a “golden age,” so an impeachment is “already ion the cards.”

    “No consensus or even significant coalition exists for trying to force into existence a new American ‘golden age’ with tariffs, which anyway is like asking a chicken to give birth to a lioness. He invented this mission out of his own confused intuition,” he accused.

    Noting that conservative historian Niall Ferguson labeled Trump’s trade policy going “full retard,” he contributed, “I go with ‘neurotic’ for the word’s wider applicability to any leader who, lacking a clear bead on his times, fabricates a gratuitously ambitious mission to meet his misguided sense of importance.”

    “Nobody in Mr. Trump’s orbit actually shares his belief in the magical efficacy of tariffs because it makes sense only in a world that doesn’t exist, where other countries don’t retaliate,” he pointed out before concluding, “The founders never anticipated today’s instantly responsive trillion-dollar financial markets. And yet these markets neatly adumbrate the founders’ scheme of checks and balances, also known as feedback. Mr. Trump, still sane enough to appreciate what’s good for Mr. Trump, listened this week to their feedback.”

    President Donald Trump vowed on Sunday that nobody was getting “off the hook” for unfair trade balances and tariff barriers, which other countries have used against the U.S.

    The Trump administration announced Friday that it was exempting imported smartphones, laptops and other electronics from reciprocal tariffs, but the president wanted to clear a few things up.

    “There was no Tariff ‘exception’ announced on Friday,” Trump said in a post on X on Sunday. “These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’  The Fake News knows this, but refuses to report it. We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.

    Customs and Border Protection issued new guidance on reciprocal tariff negotiations late Friday, noting the exemption of those goods from Trump’s April 2 executive order that declared a national emergency due to non-reciprocal trade practices and structural imbalances in the global trading system. Subsequent executive orders ramped up tariffs on China to 125%.

    The updated guidance, which cites a presidential memorandum issued Friday, excluded the products from Trump’s 125% China tariff and his baseline 10% global tariff on some countries. They apply to goods that left a warehouse as of April 5.

    Products included in the exemption are things like hard drives, computer processors, solar cells, semiconductor manufacturing equipment, flat-panel TV displays and memory chips.

    But in light of the easing of tariffs on electronics, Commerce Secretary Howard Lutnick said Sunday the exemption would be temporary.

    “They’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick told ABC’s “This Week” on Sunday.

    Lutnick’s comments Sunday made clear that more changes were on the horizon.

    Trump To Ban Corporations Buying Single-Family Homes

    By
    Madeleine Jackson
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    2

    President Donald Trump announced on Wednesday a plan to ban “large institutional investors” from buying “more single-family homes.”

    In a Truth Social post, the president declared the “American dream is increasingly out of reach for far too many people, especially younger Americans.” He blamed economic struggles on former President Joe Biden while announcing his plan to restrict home buying by companies.

    Trump wrote:

    For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans. It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations. I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks.

    Mediaite reported the housing market has faced challenges in recent years, with inflation and other economic issues leading to fewer and younger people actually buying homes. According to data from the National Association of Realtors (NAR), the average age of a first-time home buyer is around 40, a big jump from previous years. According to the 2025 data, first-time home buyers dropped to a record low of 21%.

    The Hill noted that the proposed ban could prove to be a way in for Trump and Republicans to address the issue of affordability ahead of this year’s midterm elections. The president and his Republican allies have struggled to message on the issue as inflation persists and as Democrats have won a number of special and off-year elections.

    In his TruthSocial post, the president laid blame on former President Biden for current inflation, which have remained stagnant during Trump’s second-term so far.

    “For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans,” the president noted. 

    House GOP just rolled out the OFFICIAL America 250 Membership & you’ve been selected for a coveted spot on the roster. This celebration will be remembered for DECADES — and we want you to have a front-row seat to it all. We’re asking a select group of TOP PATRIOTS to answer the following questions and join the House GOP’s official America 250 Membership. [Respond HERE]

    Trump Holds ‘Productive’ Call With New Canadian Prime Minister

    By
    Madeleine Jackson
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    0

    President Donald Trump said he held an “extremely productive call” with Canadian Prime Minister Mark Carney on Friday. 

    “I just finished speaking with Prime Minister Mark Carney, of Canada. It was an extremely productive call, we agree on many things, and will be meeting immediately after Canada’s upcoming Election to work on elements of Politics, Business, and all other factors, that will end up being great for both the United States of America and Canada,” Trump wrote on his Truth Social account. 

    It was the first time the two leaders have spoken.

    On Thursday, Carney said the “old relationship” with the U.S. “is over” while vowing to engage in a renegotiation over a trade agreement.  

    Carney, 60, won the Liberal leadership this month with 86% of the vote after former Prime Minister Justin Trudeau stepped down.

    In an address to reporters in Ottawa on Thursday, Carney offered a blunt rebuke to the Trump administration as it prepares to slap a 25 percent tariff on foreign car imports — a move the prime minister said won’t go unanswered.

    “The old relationship we had with the United States, based on deepening integration of our economies and tight security and military co-operations, is over,” Carney said.

    He continued: “What exactly the United States does next is unclear. But what is clear is that we, as Canadians, have agency. We have power. We are masters in our own home. We can control our destiny. We can give ourselves much more than any foreign government, including the United States, can ever take away.”

    He added: “We can deal with this crisis best by building our strength right here at home. It will take hard work. It will take steady and focused determination from governments, from businesses, from labour, from Canadians. We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere. And we will need to do things previously thought impossible at speeds we haven’t seen in generations.”

    Carney vowed a “broad renegotiation” of Canada’s trade and security ties with the U.S., marking a sharp departure from the conventional diplomacy that has long defined cross-border relations.

    “We will fight back with everything we have to get the best deal for Canada. We will build an independent future for our country, stronger than ever,” Carney said, promising “retaliatory trade actions” designed for “maximum impact in the US and minimum impacts in Canada.”

    Supreme Court Rules On Trump Tariffs

    By
    Madeleine Jackson
    -
    1

    The Supreme Court on Friday delivered a significant blow to President Donald Trump’s trade agenda, ruling that he cannot use a national emergency law to impose sweeping tariffs on most U.S. trading partners without clearer authorization from Congress.

    In a 6–3 decision, the justices struck down Trump’s so-called “Liberation Day” tariffs, which included a 10% global import duty and higher “reciprocal” tariffs targeting certain nations. Trump has argued the policy was essential to protecting American industry and described it as “life or death” for the U.S. economy.

    At the center of the case was Trump’s use of the International Emergency Economic Powers Act (IEEPA), a statute designed to give presidents broad authority to respond to “unusual and extraordinary threats” after declaring a national emergency.

    In April, Trump declared the nation’s growing trade deficit a “national emergency,” and his administration cited that declaration as the legal foundation for imposing the tariffs.

    Supporters of the policy argued the tariffs were necessary to counter unfair foreign trade practices and to defend American workers from decades of global economic imbalance. However, the Supreme Court ruled that IEEPA does not provide the president with unilateral power to impose tariffs on such a broad scale.

    While the law allows presidents to “regulate…importation” during emergencies, it does not explicitly mention tariffs — a key point raised repeatedly during oral arguments held in November.

    Several justices, including some appointed by Trump, questioned whether Congress intended IEEPA to serve as a tool for taxation-like powers, traditionally reserved for lawmakers.

    Administration lawyers argued that regulating imports through tariffs is effectively the same as other emergency economic actions such as sanctions or embargoes. But the Court appeared unconvinced that the statute provides sufficient guardrails for such a sweeping policy.

    The Supreme Court took up the case after multiple lower courts blocked the tariffs.

    Earlier this year, the U.S. Court of International Trade ruled unanimously that Trump does not have “unbounded authority” under emergency law to impose tariffs. The U.S. Court of Appeals for the Federal Circuit upheld that decision, pressing the administration on why Trump relied on IEEPA rather than more specific tariff statutes passed by Congress.

    Those laws typically include limits, timelines, and congressional oversight — restrictions the administration sought to bypass through emergency authority.

    The Justice Department urged the Court to allow the tariffs to remain in place, warning that denying tariff authority under IEEPA could leave the United States vulnerable to foreign retaliation and without “effective defenses” in global trade disputes.

    Trump has long maintained that persistent trade deficits represent a serious economic threat and that strong executive action is necessary when Congress fails to respond quickly.

    The ruling represents not only a setback for Trump’s trade strategy but also a major decision defining the limits of presidential power in economic emergencies.

    It’s Don Jr. To the world, he’s President Trump — to me, he’s just Dad. That’s why I’m personally inviting you to the MAGA Presidential Circle — our closest team of trusted patriots. Don’t wait. Accept your invitation by answering a few quick questions today!

    Trump Backs Off Powell Firing Talk As Markets Rally

    By
    Patrick Houck
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    0
    The White House, Public domain, via Wikimedia Commons

    President Donald Trump made clear he has “no intention” of dismissing Federal Reserve Chair Jerome Powell, despite recent public criticisms that had unsettled financial markets. Tuesday’s clarification comes after Trump had labeled Powell a “major loser” and suggested his “termination cannot come fast enough.”

    The president’s assurance appeared to calm investor fears about the central bank’s independence, triggering a significant market rebound Tuesday that extended into Wednesday morning.

    The S&P 500 rose by 3%, and the Nasdaq increased by 3.7%, reflecting investor relief over the reduced likelihood of political interference with the Federal Reserve. European markets also responded positively, with the Stoxx Europe 600 up 1.9% and Germany’s DAX gaining 2.8%.

    Despite the president’s recent criticisms, including calls for more aggressive interest rate cuts, Trump emphasized that he never intended to remove Powell from his position. He expressed a desire for the Fed to act more decisively in lowering interest rates but acknowledged Powell’s role would continue until his term concludes in May 2026.

    “I would like to see him be a little more active in terms of his idea to lower interest rates…but, no, I have no intention to fire him,” Trump told reporters in the Oval Office, according to a report from The Wall Street Journal:

    U.S. stock futures and the dollar rallied following Trump’s remarks. Gold futures dropped, pulling back from record highs.

    Trump’s softer tone on Powell came after he lashed out at the Fed chair, writing on social media last week, “Powell’s termination cannot come fast enough!”

    But on Tuesday, Trump played down recent comments by Kevin Hassett, the director of the National Economic Council, that the administration was studying whether the president could fire Powell.

    “This is a perfect time to lower interest rates. If he doesn’t, is it the end? No. It’s not,” Trump said.

    Trump also addressed trade policy, signaling that tariffs on Chinese goods — currently set at 145% — could be “substantially” reduced, though not fully eliminated. The hint at a possible easing of trade tensions, combined with his reaffirmation of the Fed’s independence, fueled the global market rebound. (RELATED: Trump Softens Tariff Stance On China)

    While the immediate market reaction has been positive, analysts warn that ongoing tensions between the Trump administration and the Federal Reserve — along with the prospect of slow-moving trade negotiations between the world’s two largest economies — could continue to weigh on financial markets in the weeks and months ahead.

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