LAST WEEK IN FINANCE
APRIL 14 - APRIL 18
Federal Funding Freezes For Harvard
As tensions tighten between the Trump administration and higher education institutions, the U.S. Department of Education has frozen approximately $2.3 billion in federal funds to Harvard University. On March 31st, the Trump administration began reviewing around $9 billion in federal grants and various contracts awarded to higher education institutions, focusing specifically on schools that were found to be noncompliant with recent executive orders targeting diversity programs, admissions policies, and cooperation with federal immigration authorities.
Harvard University responds with a firm rejection of the administration’s demands, stating that the institution “will not compromise its core values or academic independence in exchange for political compliance.” In an official statement, Harvard President Alan Garber emphasized the university’s commitment to inclusive education, research integrity, and institutional autonomy, citing the demands as “unconstitutional.” Although the dollar amount is temporarily frozen, Harvard continues to operate under its existing financial reserves and endowment support, which currently stands at over $50 billion.
What Does This Mean For You?
Although the core operations of the university may not be directly affected, the funding freeze could impact the availability of certain academic programs and research initiatives. One initiative that can possibly be effected from the freeze could be Harvard Health Publishing, which provides evidence-based medical content to the public. This free resource is used by millions of individuals, patients, and healthcare professionals worldwide to access reliable, up-to-date health information. Harvard is more than just a university—it is a driving force behind critical research, medical innovation, and public health resources that impact the daily lives of millions of Americans.
Gold Prices Surge Amid Trade Wars
Throughout history, during periods of economic uncertainty, investors flock to gold as a safe-haven asset. This week, gold soared to its all-time high, driven by the tensions of the ongoing trade war. This very surge reflects the concern of investors over market instability and increased volatility. Analysts point to a combination of factors fueling the rally—chief among them being the devaluation of the U.S. dollar, and fears of a prolonged global slowdown.
During the last major recession in 2008, gold proved its value as a defensive asset. While equities plummeted and global markets reeled from the financial crisis, gold steadily climbed, rising from around $800 per ounce in late 2008 to over $1,900 by 2011. This may be an early sign to indicate that we are approaching another recession; however, much of the outcome will depend on how the Trump administration navigates ongoing trade tensions as well as how the Federal Reserve responds to mounting economic pressure.
What Does This Mean For You?
With markets experiencing increased volatility and gold reaching record highs, now is a critical time to remain informed and deliberate. It’s essential to conduct your own due diligence before making any major investment decisions. While gold may seem like a safe bet during uncertain times, history shows that timing, policy response, and economic cycles all play a role in outcomes. Look back to the tariff-driven inflation of the 1970s, followed by the economic boom of the 1980s, and you’ll see how gold prices often moved in reaction to broader market forces—not in isolation.
President Trump Threatens To Removel Fed Chair Powell
On Thursday, April 17th, President Donald Trump stated in a social media post that Jerome Powell’s “termination cannot come fast enough!” This frustration stems from President Trump’s desire for Powell to cut interest rates more aggressively. It should be noted that Powell’s term ends in May 2026, additionally, the Federal Reserve Act prevents the President from removing a Fed Chair without cause, protecting the central bank’s independence from political interference.
Jerome Powell, who has served as Chair of the Federal Reserve since 2018, is once again at the center of political tension as President Trump threatens to remove him from his post. Appointed by former President Donald Trump and reappointed under the Biden administration, Powell has led the Fed through some of the most turbulent economic periods in recent history—including the COVID-19 pandemic and the current inflation-driven policy cycle.
What Does This Mean For You?
The Federal Reserve has always operated as its own entity, independent from the executive and legislative branches, to ensure that monetary policy decisions are based on economic data rather than political pressure. This structure is designed to maintain stability. With the increased pressure from the Trump Administration, we may see real consequences for the everyday consumer. But to be clear, there are in fact measures in place to prevent such undertakings.
Notable Events
- Retail Sales for March were released on April 16th, 2025, showing a sharper-than-expected decline in consumer spending as inflation and economic uncertainty weigh on households.
- On April 17th, 2025, President Trump publicly criticized Federal Reserve Chair Jerome Powell on social media, stating that his “termination cannot come fast enough,” amid disagreements over interest rate policy.
- The U.S. Census Bureau reported a notable drop in housing starts for March on April 17th, 2025, signaling continued cooling in the residential construction sector.
- Gold prices surged to an all-time high on April 18th, 2025, as investors reacted to growing trade war tensions and increased market volatility.
Looking Into Next Week
As we look ahead to next week, earnings season will also continue in full swing, with major tech companies like Tesla, Microsoft, and Meta Platforms expected to report results. A key highlight will be the release of the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data—two critical indicators of inflation that could influence the Federal Reserve’s next move on interest rates. With volatility still high and gold setting new records, next week could bring more clarity—or more turbulence.