Trump receives warning of empty shelves and financial chaos - stocks increase strongly

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The latest attacks by President Donald Trump on the chairman of the Federal Reserve, Jerome Powell, as well as the massive tariffs, especially on China, triggered some of his most important consultants and the largest CEOs America's concern. These warn that the shelves in the shops could be emptied if the tariffs remain astronomically high, according to the discussions.

market reaction and Trump's withdrawal of threats

These warnings and the volatility of the markets seem to have had an effect this week. Trump distracted from his threats on Tuesday to remove Powell from office and told reporters in the Oval Office: " I do not intend to fire him. "

optimism on Wall Street

This made it easier to relieve Wall Street. One day after the markets due to statements by Finance Minister Scott Besseter had flourished with China US markets again bound. The Dow Jones increased by more than 1,100 points, or 2.9%on Wednesday morning. The wider S&P 500 climbed by 3.4%, while the technology -oriented Nasdaq Composite rose by 4.45%

public concern about customs policy

investors bought US state bonds again, which pressed the benchmark interest rate for 10-year bonds, which develops contrary to prices, significantly below 4.3%. Higher government officials were also relieved by Trump's explanation of Powell, since they had become restless due to the heated rhetoric and feared that Trump could take legal steps to relieve the chairman of the Federal Reserve.

meeting with retail CEOs

The remarkable change in Trump's tone opposite Powell and China came one day after a private meeting in the Oval Office with the bosses of four large US individual trading companies. These had expressed their concerns about the economic consequences of Trump's customs policy and the resulting uncertainty for the financial markets. The invited CEOs included Walmart, Target, Home Depot and Lowe’s, which brought a clear message about disorders in the supply chain and their effects on consumers.

effects on retail

The Trump tariffs have considerable pressure on retail. The economic leaders warned that the shelves in the shops across America could soon be empty "because they draw a dark economic picture that could become clearer in the coming weeks.

economic challenges and uncertainties

For weeks, Trump's chief of staff Susie Wiles and other senior consultants had received worrying calls from managing directors who reported on the effects of Trump's customs threats and the constant pressure on Powell. The President's statements have mixed up the markets and shaked confidence in the economic management of the government.

Trump's economic strategy

Bessent, who is one of the leading cabinet members, whose words have calmed down the financial markets, acted as a core figure in the organization of the CEO meeting to clarify the seriousness of the economic challenges that the government faces. Doug McMillon, the CEO von Walmart, who has built up a warm relationship with Trump by meeting in Mar-A-Lago and through common friends, made it unequivocally clear to the President that the trade war has already started to disrupt the supply chain and will continue to worsen by summer.

Trump's threats and the reaction of the Fed

Although many of Trump's consultants ultimately did not believe that he would actually fire Powell, his last statements had fueled new uncertainties with regard to his intentions. Especially his posting on social media on Thursday, in which he explained that Powells " can! ”, and his further name Powells as“ big losers ”stoked concerns.

political arguments and the independence of the Fed

Trump argues that the Fed should soon lower interest rates to boost the economy - possibly as a countermeasure to the enormous economic burdens that are expected by its high tariffs. However, Powell has repeatedly emphasized that the FED will not make a decision on interest rate reductions or increases in hasty and will only decide after careful consideration, especially not before the next meeting of the interest rate committee in May.

The Press spokeswoman of the White House, Karoline Leavitt, continued Trump's line in a press conference on Tuesday and defended the president for his criticism of the Fed. She expressed that the Fed measures for reducing interest in the late phases of bidding administration-but not (not yet) under Trump-could be politically motivated. Despite these claims, there is no evidence that the independent Fed pursue political interests, and Powell has repeatedly denied that the fed policy is shaped by political motives.

Overall, it remains to be seen how the situation around Trump's tariffs and his conflicts with Powell will develop and what effects this could have on the American economy and the financial markets.