Capital Economics: Trump's dismissal of Powell will shock the market, and the new chairman will not cut interest rates as expected

Planet Daily News: Kathleen Macro's North American Deputy Chief Economist Stephen Brown pointed out in a report that Wednesday's market reaction foreshadowed how investors might respond if Trump follows through on his threat to fire Federal Reserve Chairman Powell. Brown stated that at that time, the US dollar, stocks, and short-term bond yields might fall, while long-term yields could surge. Trump has denied reports about his attempt to fire Powell, calling such claims "highly unlikely". However, the new Federal Reserve chairman is likely to be announced well before Powell's term ends in May 2026. Brown emphasized that even with a change in leadership, the Federal Reserve is extremely unlikely to cut interest rates by 300 basis points as Trump advocated. (Jinshi)