Trump Slams Powell: Are High Rates Choking Your Portfolio?
$S&P 500(.SPX)$ $NASDAQ(.IXIC)$
President Trump’s fresh jab at Fed Chair Jerome Powell, branding him “incompetent” for keeping interest rates too high, has reignited the debate over monetary policy’s grip on markets. With the Fed funds rate at 4.75-5% after September’s 50bps cut, Trump argues it’s strangling growth, especially as U.S. stocks just bled for three days straight, erasing post-Fed gains. Meanwhile, Eric Trump’s $1M Bitcoin prediction and Centurion REIT’s 9.1% IPO pop in Singapore signal wild divergence in market bets. So, is Trump right—are rates crushing opportunity, and should you hedge, pivot to crypto, or ride the REIT wave?
Trump vs. Powell: The Rate Rant Breakdown
Trump’s latest salvo, aired at a Mar-a-Lago presser, claims Powell’s “misguided” policy is killing small businesses and inflating costs, despite inflation cooling to 2.4% in August 2025. He’s pushing for rates below 3%, citing robust 2.5% GDP growth and a 3.8% unemployment rate as proof the economy can handle looser money. But Powell’s camp counters that sticky services inflation (3.1%) and hot jobs data (200k+ adds in August) justify caution—too-low rates could reignite price spirals. Markets are pricing in just 75bps of cuts for 2026, per CME FedWatch, down from 100bps expected pre-pullback. Trump’s influence is real: his comments tanked the 10-year Treasury yield to 4.2% from 4.3% intraday, as bond traders bet on political pressure forcing Powell’s hand.
The S&P 500’s 1.5% three-day slide (5,684 by Thursday) reflects rate-hike jitters, with tech giants like Nvidia down 4% on valuation fears (P/E at 45x). Yet, Singapore’s Centurion REIT (CAREIT) soared 9.1% on debut, hinting at a flight to yield. Bitcoin, despite Eric’s $1M moonshot call, dipped 0.8% to $108,672, showing crypto’s not immune to macro noise. Trump’s rhetoric could juice risk assets short-term if rate-cut bets revive, but Powell’s data-driven stance suggests no sharp pivot soon.
Hedge, Crypto, or REITs: Where’s Your Money Going?
Trump’s rate complaints amplify uncertainty, so let’s game out your moves. If you’re spooked by the S&P’s wobble, hedging makes sense—VIX calls (VIX at 18) offer cheap insurance against further dips, especially with Q3 earnings looming. Tech’s pricey (Nasdaq P/E at 32x), so trimming winners like semiconductors (SOXX down 3%) via covered calls locks in gains. Bitcoin’s a wild card: Eric’s $1M forecast banks on adoption (420M users) and deregulation, but its 7.8% weekly drop screams caution. A 5% portfolio slice into BTC or BITO ETF captures upside without betting the farm.
REITs, like CAREIT’s 7.47% yield play, shine brighter here. Singapore’s IPO boom ($1.46B raised in 2025) and CAREIT’s low 20.9% gearing make it a haven for income seekers. REIT ETFs like Lion-Phillip S-REIT (5.5% yield) diversify across 20+ names, cushioning against U.S. rate drama. If Trump’s pressure forces faster cuts, REITs and small caps (Russell 2000 up 1% this week) could outperform tech’s volatility.
Here’s how key assets stacked up this week:
Your Next Step: Play the Pullback or Stay Steady?
Trump’s rate rant could spark short-term market pops if cut expectations rise, but Powell’s holding firm for now. Hedge smart: trim tech, add VIX calls, or rotate 10-20% into defensives like REITs or gold ($2,700). Bitcoin’s a speculative kicker, not a core holding—Eric’s $1M call is years out. CAREIT’s 8% yield and Singapore’s IPO heat make REITs a safer anchor; ETFs like CLR spread the risk. What’s your move—hedging against rate uncertainty, chasing crypto dreams, or banking on REIT stability? Hit the comments; let’s break it down.
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