Is the Fed's Independence at Risk?
Trump has brought up plans to remove Powell from office.
Reason: Failure to lower interest rates and the Fed's $2.5 billion HQ renovation budget.
But:
📌 The US Supreme Court clearly states that Fed chairmen can only be removed from office for “valid reasons” such as serious misconduct.
📈 Market Impact:
– Short-term volatility following the news
– Interest rate cut pricing began in September
– Investors are concerned about the Fed's independence
🧭 Key developments to watch in the coming days:
✅ Renovation budget investigation
✅ New statements from the Trump campaign
✅ Potential shift in tone in the Fed's policy messages
📊 This process could affect not only Powell's future but also the entire macroeconomic policy outlook.