Trump Fires Powell, Targets Lisa Cook & Issues Tariff Threats to China

The US President Donald Trump's decisions are sending shockwaves in the financial markets and international relations as the world is on edge following the major firings and controversial remarks on foreign trade.

Trump and His Decisions

In the last week, President Donald has made a series of unprecedented actions with regard to the Federal Reserve. He has publicly demanded the removal of Fed Chair Jerome Powell on several occasions, which would represent a reorganization of the top leadership of the central bank.

In the Fed, Trump has been vocal that his preferred candidates share his political and economic ideology. There are speculations to make monetary policy more directly under his control, which may include Fed rate cuts . The chain of actions indicates the existence of a broader strategy to affect the financial system in the run-up to the elections of 2026.

Trump fires Lisa Cook, but she refuses

President Trump fired Federal Reserve Governor Lisa Cook .

In the statement, Donald claimed that he had decided that there was enough cause to remove her immediately from office.

He accuses Cook of deceitful and potentially criminal conduct over mortgage agreements.

The letter to Cook pointed out falsifications on two mortgage documents, which seemed to be serious misconduct.

However, in a bold response, Fed Governor Cook stated that President Trump has no authority to fire her and that she will not resign. Her lawyer added that they plan to take “whatever actions are needed to prevent” Trump’s “illegal action.”

This new development intensifies the turbulence within the Federal Reserve, following Fed Governor Kugler’s unexplained resignation and Donald's repeated calls to remove Powell.

His swift actions continue to reflect his attempts to shape monetary policy directly, with speculation that any new appointments may favor figures aligned with his economic strategies.

Source: The Kobeissi Letter X

Trump China Trade Tariffs : Bold Step or Foolish

US president has also turned his focus toward international trade, particularly China. In recent statements, Trump has threatened to impose tariffs as high as 200% if China does not comply with U.S. demands regarding critical materials like magnets.

While he later clarified he would not destroy China, it underscores his tough stance on trade negotiations. The statements have stirred debates about potential consequences for global supply chains, markets, and diplomatic relations. This suggests that he intends to use trade as a bargaining tool while maintaining a strong, nationalistic approach.

Source: X

Public Reaction

• The public and financial markets have reacted with a mixture of shock, concern, and speculation.

• Many investors are questioning the independence of the Federal Reserve, fearing political interference in monetary policy.

• Social media has seen lively debates, with some praising the president's decisive leadership while others warn of reckless moves.

• Crypto enthusiasts are joking about the potential for massive monetary expansion, while mainstream analysts caution about market instability.

• Citizens are closely watching these developments, unsure whether his aggressive decisions are bold leadership or foolish presidential power.

Source: X

Conclusion

The recent actions of President Donald have rocked the U.S. financial system and the international trade scene. The world, investors, and citizens are watching the next step.