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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Too Little, Too Late. Jerome “Too Late” Powell is a disaster. DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!”
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 criticism of Federal Reserve Chairman Jerome Powell and his call to ‘DROP THE RATE!’ could lead to increased volatility in the financial markets. Bank stocks like Bank of America, JPMorgan Chase & Co., and Goldman Sachs Group might experience fluctuations due to potential changes in interest rate expectations, which directly affect their lending margins. Additionally, financial ETFs such as the Financial Select Sector SPDR Fund, SPDR S&P Regional Banking ETF, and Vanguard Financials ETF could see shifts in investor sentiment as market participants react to the possibility of altered monetary policy and its impact on the financial sector.
Here are some of the stocks that might be affected:
Bank of America ((BAC)),
JPMorgan Chase & Co. ((JPM)),
Goldman Sachs Group ((GS)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Financials ETF ((VFH)).