Jim Cramer took a jibe at President Donald Trump in premarket on Tuesday as the stock futures rose amid the President’s criticism of Federal Reserve Chairman Jerome Powell for not cutting interest rates.
What Happened: Cramer, in an X post, highlighted that investors “would actually buy this rally,” if Trump did not criticize Powell for “being prudent about rates.”
Meanwhile, senior economist Jeremy Siegel highlighted in his weekly note that Powell will be blamed for any issues arising from Trump’s policy decisions. “I expect Trump to increasingly blame the ‘too slow Powell’ for any downsides that materialize from Trump’s policies. Powell may be technically secure in his position, but that doesn’t mean he’s insulated from blame.”
While Powell’s term as the Fed Chair ends in May 2026, Trump’s economic adviser, Kevin Hassett, told reporters at the White House on Friday that Trump and his team would “continue to study” whether Powell could be fired.
However, before Trump’s call for preemptive rate cuts, Treasury Secretary Scott Bessent described Fed independence in deciding on monetary policy as a “jewel box that has got to be preserved,” last week in a Bloomberg Television interview.
Joseph Wang, the CIO at Monetary Macro, said in a post that “Trump will get his Fed Chair sooner or later,” indicating the damage it could cause to U.S. dollar and equities.
“Foreign investors are heavily exposed to U.S. equities and will need reduce exposure, especially as the dollar no longer strengthens in risk-off. They have a lot to sell,” he said.
Why It Matters: Trump criticized Powell in a Truth Social post on Monday, calling him a “loser” and “Mr. Too Late.”
This triggered a sharp selloff in the U.S. equities as it threatened the independence of the central bank.
After Monday’s close, the Nasdaq 100 was down 19.86% from its all-time high of 22,222.61 points. The S&P 500 index was 16.09% lower than its previous record of 6,147.43 points, and the Dow Jones was 18.09% below its 52-week high of 45,073.63 points.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 1.00% to $519.02, while the QQQ declined 0.98% to $437.35, according to Benzinga Pro data.
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