Markets Shrug Off Fed Drama and Focus on Macro Tailwinds

July 21, 2025 — Recent rhetoric from the White House has drawn attention to Federal Reserve Chair Jerome Powell, particularly regarding scrutiny of the central bank’s $2.5 billion headquarters renovation. While legal experts generally agree that a president cannot fire a Fed chair without cause, reports that the administration explored such an option — however unlikely — were enough to momentarily induce market volatility last week. Treasury Secretary Scott Bessent reportedly advised against any action, citing potential market instability and legal uncertainty.