Trump's threat to fire Fed Chair Powell causes U.S. stocks to plummet before recovering.

On July 16, 2025, President Trump's suggestion of potentially firing Federal Reserve Chair Jerome Powell led to a volatile day in the U.S. stock market. The S&P 500 initially fell by 0.7% after reports of Trump's consideration, but recovered after he stated it was "highly unlikely" he would fire Powell. Trump has been critical of Powell for not cutting interest rates, which would make borrowing cheaper for households and businesses, but concerns remain that a less independent Federal Reserve could struggle to control inflation.