🗞️ Debate Over Central Bank Independence Sparks
New Wave of Uncertainty in US Markets
"Debate on central bank independence adds new uncertainty for US markets" discusses the escalating tensions between President Donald Trump and Federal Reserve Chair Jerome Powell, which are causing significant volatility in U.S. financial markets. President Trump's public criticism of Powell for not lowering interest rates, coupled with suggestions of potentially removing him from his position, has raised concerns about the Federal Reserve's independence. This political interference is undermining investor confidence, leading to a decline in the U.S. dollar to a three-year low and a surge in gold prices to record highs. The situation is further complicated by ongoing trade tensions and the lack of new trade agreements, contributing to a broad sell-off in U.S. and European stock markets. Analysts warn that undermining the Fed's autonomy could lead to higher inflation and long-term economic instability.