President Donald Trump once again embodied contradiction this week, reversing course after sharply criticizing Federal Reserve Chair Jerome Powell. After publicly attacking the head of the US central bank and demanding immediate rate cuts, Trump abruptly softened his stance, saying he had "no intention of firing him." 

The situation marks yet another dramatic shift. Previously, Trump warned that US economic activity could slow unless the Fed moved quickly to lower rates. "There can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," Trump wrote on his Truth Social platform. The president added that he has the authority to dismiss Powell before his term ends in 2026.

During his first term, Trump frequently criticized Powell for being too cautious about cutting interest rates. Trump also claimed that he understood finance better than Powell, noting that his experience of making "a lot of money" and being "very successful" gave him a "better instinct" than the Fed chair.

Markets reacted swiftly to the rhetoric, with gold prices soaring to new all-time highs. Bitcoin also posted strong gains, extending its recent rally. Analysts attributed the moves to investors seeking refuge in traditional and digital safe-haven assets amid mounting economic and political uncertainty.