Fed cuts US growth outlook as Trump trade war gathers pace
Wednesday, 19 March 2025 The US central bank has slashed its expectations for economic growth this year as it eyes challenges on several fronts amid Donald Trump's escalating trade war.
In a 6–3 decision, the Supreme Court ruled that President Trump had the authority to fire Biden-appointed officials Wilcox and Harris mid-term, weakening decades-old congressional protections over independent agencies. The decision—criticized by Justice Kagan—allows presidents to remove executive officers without cause, but excludes the Federal Reserve. Trump’s firings stalled the NLRB and Merit Board, halting key decisions. While the ruling marks a major shift in separation of powers, the Court says a final judgment is still pending.
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President Trump now says he has “no intention” of firing Federal Reserve Chair Jerome Powell, despite calling him a “major loser” just days ago. Trump’s sudden reversal—delivered in the Oval Office—comes after sharp criticism and market turbulence. Wall Street surged on the news, as fears of a central bank shakeup faded. Trump had previously accused Powell of failing to cut interest rates. The about-face follows internal White House talks on removing Powell, who is legally protected until 2026. Critics warned that firing him could destabilize the entire financial system.
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Investors flee US assets as Trump attacks Fed’s Powell and calls for rate cuts
Investors continued offloading US assets as the Trump administration seeks a way to dismiss Federal Reserve Chair Jerome Powell. Trump has demanded rate cuts, referring to Powell as “a major loser” in a social media post. The US dollar weakened to a three-year low.
READ MORE : http://www.euronews.com/2025/04/22/investors-flee-us-assets-as-trump-attacks-feds-powell-and-calls-for-rate-cuts
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Credit: euronews (in English) Duration: 01:30Published
Trump has launched a fiery attack on Federal Reserve Chair Jerome Powell, calling for his immediate termination after slamming the Fed’s latest economic report as a “complete mess.” Trump accused Powell of being “too late and wrong” on interest rate policy and compared him unfavorably to the European Central Bank, which just issued its seventh rate cut in a year. The outburst follows Powell’s stark warning that Trump’s sweeping tariffs could drive the U.S. into stagflation. With Powell’s term running through 2026 and legal protections in place, Trump’s demand has ignited a constitutional debate over presidential power and the independence of America’s central bank.
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As Iran prepares to present a nuclear proposal to the U.S., Israeli military plans for a potential unilateral strike are nearly complete. Reports suggest Israel is moving munitions and reviewing final scenarios, while diplomatic efforts falter. A call between Trump and Netanyahu triggered emergency security meetings, highlighting deepening mistrust of Iran’s intentions. Israeli officials fear Tehran won’t abandon enrichment, while the U.S. seeks full denuclearization. With Iran weakened by sanctions and regional proxies losing ground, Israeli urgency grows—though U.S. officials warn that a strike could ignite a broader regional conflict.
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Former Speaker Nancy Pelosi is criticizing Donald Trump for deploying the National Guard to Los Angeles without Governor Gavin Newsom's consent, calling it a violation of Article 10 of the Constitution. Pelosi compared this to Trump’s refusal to deploy the Guard during the January 6 Capitol riot, despite bipartisan pleas. “And yet, in a contra-constitutional way, he has sent the National Guard into California,” she said. With legal and political tensions rising, Pelosi warns: "Something is very wrong with this picture."
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