Fed Chief Under Fire: Morgan Stanley Exec Reveals Shocking Truth

Simonetti: Trump’s fed Criticism is Just noise

Katerina Simonetti, a top executive at Morgan Stanley, believes President trump’s criticism of Federal Reserve Chair Jerome Powell is just “noise.” Simonetti, a senior vice president and private wealth advisor, shared this view during a CNBC ‘Fast Money’ interview.

Trump has criticized Powell before, notably in 2019, calling him a “golfer who can’t putt.” The latest criticism stems from Trump’s dissatisfaction with the Fed’s handling of interest rates. Trump even suggested Powell’s “termination cannot come fast enough.”

However,Simonetti argues that Trump’s threats won’t impact the markets or Fed policy. She believes data, not political rhetoric, guides the Fed’s decisions. Recent tariffs, she notes, add significant inflationary pressures that the Fed must consider.

Simonetti expects no rate cuts in 2025 and believes Powell will complete his term. Her comments come as markets react negatively to tariffs and the U.S.-China trade war. The White House has raised tariffs to 245%, causing stocks and crypto to plummet. Bitcoin fell below $80,000 but has since recovered above $85,000.

Despite inflation slowing, stocks remain negative. Powell insists he won’t step down, leaving him “stuck between a rock and a hard place,” according to ‘Mad Money’ host Jim Cramer.