Bloomberg Daybreak: Europe Edition Trump Targets Powell, Traders Dump US Assets, $2 Trillion Tariff Hit
Apr 22, 2025
President Trump warns of economic slowdown if the Federal Reserve doesn't cut interest rates, targeting Fed Chair Powell. Market volatility unfolds as stocks and bonds fluctuate amidst tariff uncertainty, with gold prices rising as investors seek safety. Trump's tariffs could reportedly shave $2 trillion off global output, raising concerns over domestic and international trade. Additionally, the podcast discusses the challenges facing the UK in trade negotiations and the Labour government's fiscal pressures as they navigate potential budget cuts and tax increases.
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Trump's Threat Risks Fed Independence
- Trump's pressure on Federal Reserve Chair Jerome Powell has unsettled markets and sparked fears of his potential removal.
- This political pressure risks disrupting central bank independence, a critical factor for market stability.
US Economic Headwinds Deepen
- US economic headwinds include tariffs, plummeting corporate confidence, and declining capital expenditure plans.
- Consumer confidence is at its lowest in decades, fueling market uncertainty and flight to gold.
Tariffs to Cut $2 Trillion Output
- President Trump's tariffs are estimated to reduce global economic output by $2 trillion through 2027.
- The ongoing uncertainty around tariffs undermines confidence in US economic and security leadership.