President Donald Trump does not like Chairman of the Federal Reserve Jerome Powell.
He recently said, “Powell’s termination cannot come fast enough.”
“The President and his team will continue to study that matter,” White House economic adviser Kevin Hassett said after a reporter questioned if firing Powell “is an option in a way that it wasn’t before.”
Powell is set to serve another year. Depending on who is interpreting the law surrounding the appointment of the Fed Chair, it may not even be possible for a president to fire him.
But even if he cannot be fired, the ongoing feud will impact President Trump’s tariff plans, interest rates, employment, and investments. The public nature of their battle is making a lot of people with a lot of money squirm.
Would Powell keep interest rates high to spite President Trump and his tariff plan?
Could President Trump make executive moves to limit Powell’s authority?
Could his team find a legal foundation to remove Powell from the position, launching a protracted legal battle that will almost certainly have to be decided by the Supreme Court?
Could Powell break, granting President Trump the interest rate cuts he wants in order to grease the wheels of the economy to establish a legacy in his final year?
“Literally every viable scenario points to precious metals prices continuing to rise,” said Jonathan Rose, CEO of Genesis Gold Group. “The only unlikely scenario that could hurt gold in the long run is if Powell raises rates, President Trump drops his tariff plans, and everybody suddenly starts boosting the U.S. Dollar.
“I don’t have a crystal ball, but it would take a series of unlikely events to slow gold down in the long term.”
Genesis Gold Group has positioned itself and its IRA clients for such a time as this. They have an appropriate and powerful metals mix for those who initiate a tax-free rollover or transfer of their current retirement accounts into a Genesis Gold IRA.
Powell continues to be defiant, saying that President Trump’s tariff plans will hit both inflation and employment numbers negatively. This has market analysts giving it a 90% chance that rates will not be lowered at next month’s Fed meeting.
This bodes ill for many other types of investments.
The stock market is still vulnerable.
The bond market is shaky.
Although home price growth continues, the pace has decelerated, with most experts expecting further slowdowns as inventory expands and mortgage rates stay elevated.
It has been over a month since Bitcoin dropped below $90,000 and it still hasn’t recovered.
Gold prices have risen over 13% in the same time period.
Whatever happens between Powell and President Trump, it is likely to rock the markets in the short term while setting the stage for long term stability for precious metals prices. To learn more about how Genesis Gold Group can help with your retirement portfolio, request their free, definitive gold guide.
