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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions! “Fannie, Freddie regulator: Powell should cut rates or quit””
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s critical remarks about Federal Reserve Chairman Jerome Powell could lead to increased volatility in the stock market, particularly affecting financial stocks such as Freddie Mac (FMCC), Financial Select Sector SPDR Fund (XLF), Federal National Mortgage Association (FNMA), and Vanguard Financials ETF (VFH). Investors may react negatively to the uncertainty and perceived instability in monetary policy, potentially causing fluctuations in these financial instruments. Additionally, the call for Powell to cut rates or resign might heighten market speculation about future interest rate decisions, impacting the broader financial sector.
Here are some of the stocks that might be affected:
Freddie Mac ((FMCC)),
Financial Select Sector SPDR Fund ((XLF)),
Federal National Mortgage ((FNMA)),
Vanguard Financials ETF ((VFH)).