Seems Powell is having an alpha male competition with Trump. He doesn’t think rates need lowering, Trump does. We will see who blinks first but I read Trump is exploring possibilities to relieve Powell from his duties. Historically the FED always seems to act too late. I think Powell should cut rates, it will make life cheaper for Americans.
I don't think it's a good idea for Trump to actually fire Powell. I know he can't do it in theory, but in practice he may have a way to get him out creating the necessary political demand for lower rates. So this puts Powell in a tricky situation: If he cuts, will he be cutting because of real conviction based on the data they are monitoring, or it will be due Trump pushing the tariff thing in order to cause US10Y go up and thus force Powell to cut so they can buy back the debt to lower yields? But that would make it easy for Powell to lower rates too, it would give him an excuse... there's so many dynamics in this thing that is hard to tell what's going on. But what I think it's clear is if Trump pushes his hand too much and looks like a dictator running the FED and actually somehow fires Powell, the market is going to tank another 10 to 20%.