Market Wobbles: Trump's Fed Chair Drama and Inflation Worries

July 16, 2025, saw some ups and downs in the stock market. The S&P 500 went up by 0. 32%, ending at 6, 263. 70. The Nasdaq Composite also had a good day, gaining 0. 26% and hitting a new high for the year at 20, 730. 49. The Dow Jones Industrial Average added 231. 49 points, or 0. 53%, closing at 44, 254. 78. But it wasn't all smooth sailing—the Dow dropped 264. 31 points at one point. Rumors flew around that President Donald Trump might fire Jerome Powell, the head of the Federal Reserve. This news shook up the market at first, but then Trump said it was unlikely. Still, people are worried he might do it later. A White House official said Trump is thinking about removing Powell. The New York Times even reported that Trump had written a letter to fire Powell and showed it to some lawmakers. Trump has been pushing for lower interest rates. He said the Fed should cut rates by 3 percentage points. But Powell said the Fed can't do that because of the tariffs Trump put on imports. These tariffs have made prices go up, so the Fed can't lower rates right now. People in the market are worried about inflation and how Trump's tariffs are affecting the economy. New data showed that prices went up in June. And even though wholesale prices didn't change much, experts say the numbers aren't great. Marc Balcer, an investment strategist, said the tariffs will eventually affect consumers. Big banks like Bank of America, Morgan Stanley, and Goldman Sachs reported their earnings. Even though they did better than expected, their stock prices didn't go up much. Goldman Sachs did a bit better, with shares rising nearly 1%.