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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Just out: No Inflation!!! “Too Late” must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!! President DJT”
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 social media post criticizing the Federal Reserve and calling for lower interest rates could create volatility in the stock market, particularly affecting financial institutions like Bank of America, JPMorgan Chase & Co., and Goldman Sachs Group. Lower interest rates can compress net interest margins for banks, potentially impacting their profitability, which may lead to fluctuations in the Financial Select Sector SPDR Fund, SPDR S&P Regional Banking ETF, and Vanguard Financials ETF. Investors may react to the uncertainty and perceived instability in monetary policy, leading to increased market activity and potential shifts in stock prices for these financial entities.
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)).