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:
đ The US Supreme Court clearly states that Fed chairmen can only be removed from office for âvalid reasonsâ such as serious misconduct.
đ Market Impact:
â Short-term volatility following the news
â Interest rate cut pricing began in September
â Investors are concerned about the Fed's independence
đ§ Key developments to watch in the coming days:
â Renovation budget investigation
â New statements from the Trump campaign
â Potential shift in tone in the Fed's policy messages
đ This process could affect not only Powell's future but also the entire macroeconomic policy outlook.