{"id":41726,"date":"2025-07-19T11:35:33","date_gmt":"2025-07-19T11:35:33","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/19\/bank-of-america-reveals-trades-investors-can-do-if-trump-fires-jerome-powell\/"},"modified":"2025-07-19T11:35:33","modified_gmt":"2025-07-19T11:35:33","slug":"bank-of-america-reveals-trades-investors-can-do-if-trump-fires-jerome-powell","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/19\/bank-of-america-reveals-trades-investors-can-do-if-trump-fires-jerome-powell\/","title":{"rendered":"Bank of America reveals trades investors can do if Trump fires Jerome Powell"},"content":{"rendered":"
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Bank of America pointed out trade setups investors can do if US President Donald Trump fires US Federal Reserve Chair Jerome Powell. <\/p>\n

The long-simmering tensions between Trump and Powell reached a new level this week, with reports suggesting Trump had moved closer to attempting Powell\u2019s removal. <\/p>\n

Although Trump later denied that Powell\u2019s dismissal was imminent, his public criticism of the Fed chief has intensified, prompting concern across global markets and among investors.<\/p>\n

Reports of dismissal plans spark market anxiety<\/h2>\n

According to a report from The New York Times, Trump went as far as drafting a letter to fire Powell, a move that would likely spark a constitutional and market crisis given the Federal Reserve’s independence. <\/p>\n

CNBC also reported that a White House official had confirmed Trump was considering Powell\u2019s removal. <\/p>\n

While Trump publicly denied an immediate dismissal, he did not rule it out entirely.<\/p>\n

In a post on Truth Social on Friday, Trump reiterated his frustrations with Powell, stating, \u201clower the Rate, Too Late,\u201d as he continued to pressure the Fed for lower interest rates. <\/p>\n

The criticism mirrors previous historical tensions between presidents and Fed chairs \u2014 notably, George H.W. Bush blamed Alan Greenspan\u2019s cautious rate cuts for contributing to his failed reelection bid. <\/p>\n

Still, no modern US president has been as direct or persistent in urging monetary easing as Trump.<\/p>\n

Strategic motives behind rate pressure<\/h2>\n

Bank of America strategist Michael Hartnett outlined potential reasons behind Trump\u2019s aggressive posture on rate cuts. <\/p>\n

In his latest \u201cFlow Show\u201d report, Hartnett noted that federal spending dynamics may be a key factor. <\/p>\n

\u201cUS government spend = $7tn and Trump can\u2019t cut $4tn mandatory spending, has backed off cutting $1tn of discretionary spend (no DOGE) and $1tn of defense spend,\u201d he wrote.<\/p>\n

Hartnett emphasized that if Powell were removed and rate cuts followed despite no recession, it would likely lead to significant market implications.<\/p>\n

How investors can position themselves<\/h2>\n

Hartnett outlined a series of potential investment plays in the event of Powell\u2019s dismissal and subsequent rate cuts. <\/p>\n

Among his recommendations: shorting the US dollar due to the potential for currency debasement, going long on gold and cryptocurrencies as hedges against policy uncertainty, and shorting long-term Treasury bonds if the Fed cuts rates during an economic boom rather than a bust.<\/p>\n

He also suggested a \u201cbarbell\u201d strategy in equities, combining US tech stocks with value plays in developed and emerging markets (EAFE\/EM). <\/p>\n

These positions could offer hedges against speculative bubbles or policy-driven market distortions.<\/p>\n

Despite the political noise, the equity markets have remained resilient. The S&P 500 closed at a record high on Thursday and is on track for a weekly gain. <\/p>\n

Investors also continued to pour money into equities, with Bank of America clients allocating $4.8 billion to stocks this week, according to Hartnett.<\/p>\n

As the drama between Trump and Powell unfolds, market participants are watching closely. <\/p>\n

A forced change in Federal Reserve leadership would be an unprecedented event with far-reaching consequences, both economic and political.<\/p>\n

The post Bank of America reveals trades investors can do if Trump fires Jerome Powell<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Bank of America pointed out trade setups investors can do if US President Donald Trump fires US Federal Reserve Chair Jerome Powell. The long-simmering tensions between Trump and Powell reached a new level this week, with reports suggesting Trump had moved closer to attempting Powell\u2019s removal. Although Trump later denied that Powell\u2019s dismissal was imminent, <\/p>\n","protected":false},"author":1,"featured_media":41727,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-41726","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41726"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41727"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}