Part 4/12:
The prospect of a potential change at the Federal Reserve unsettled markets, with analysts debating whether Trump's threats to replace Powell signal policy shifts or political posturing. Some experts questioned the wisdom of pursuing lower interest rates amid existing inflation levels in the high twos—still relatively high historically—and an uncertain geopolitical landscape. Lower rates could encourage excessive borrowing and speculation, risking asset bubbles, particularly in housing, where prices tend to surge when borrowing costs decline.