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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“”Too Late” Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO. No inflation, great economy – We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!”
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 Jerome Powell’s decision not to lower interest rates could create uncertainty in the financial markets, potentially affecting bank stocks like Bank of America, JPMorgan Chase & Co., and Goldman Sachs Group. Investors might anticipate changes in monetary policy, leading to volatility in financial ETFs such as the Financial Select Sector SPDR Fund, SPDR S&P Regional Banking ETF, and Vanguard Financials ETF. This uncertainty could result in short-term fluctuations as market participants react to potential shifts in interest rate expectations.
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)).