Wall Street is coming to Fed's defense
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Consumers' inflation expectations, by some measures, are also the highest in decades. Inflation has been above the Fed's 2% target for over four years, and the prospect of a dovish Fed under the stewardship of a new Trump-friendly Chair could keep it that way.
Top voices on Wall Street have expressed alarm over the idea that Trump could fire Fed Chair Jerome Powell, emphasizing the need for Fed independence.
PepsiCo jumped 7.5% after delivering revenue and profit that topped Wall Street’s expectations. The drink and snack giant also stood by its financial forecasts given in April, which projected lower full-year profit than previous forecasts due to increased costs from tariffs and a pullback in consumer spending.
This past April, when President Donald Trump started flirting with the notion of firing Fed Chair Jerome Powell, stocks and the dollar tumbled because investors worried that even talking about such a move crossed a red line.
Many on Wall Street have privately worried that political pressure will undermine the Federal Reserve’s credibility.
Wall Street appears calm after President Donald Trump walked back his earlier threats to fire Federal Reserve Chair Jerome Powell.
The Nasdaq rose to a record high on Thursday, leading a cautious climb across Wall Street's major indices, as strong economic data lifted spirits and airline stocks took off on United Airlines' results.
What Happened in Markets Today The debate on the Fed continued. Former Federal Reserve governor Kevin Warsh, a potential nominee to succeed Fed Chair Jerome Powell, said on CNBC that the Fed should stay independent.
Wall Street's main indexes rose slightly, buoyed by strong results from PepsiCo and positive economic data. Retail sales exceeded expectations and job growth remained steady. Despite potential tariff impacts,
Wall Street watches the major averages whipsaw on Wednesday, following a softer-than-anticipated wholesale inflation report and news that President Trump indicated that he will fire Fed Chairman Jerome Powell.
1don MSN
Early trading on Wall Street was quietly mixed as markets shift their attention toward a deluge of corporate earnings reports.