realnews

Markets in Danger!!!

#FederalReserveIndependence 

Trump’s intention to remove Federal Reserve Chairman Jerome Powell has taken center stage in the markets. According to experts, such a move would severely undermine the Fed’s independence — a development that could directly increase the risk of economic stagnation.

Why Does It Matter?
The Fed’s independence equals trust for the markets.
If that trust is damaged, investors may turn to aggressive selling.

Experts warn that “stagflation trading” (high inflation + stagnant growth) could gain momentum.

Movements in the bond and currency markets indicate growing skepticism toward Trump’s policies. However, the continued low inflation expectations still suggest confidence in the Fed.

Long-Term Risks:
Rising inflationary pressures
Sharp drop in the U.S. dollar
Higher equity risk premiums due to stagnation.

A steeper yield curve
What do you think? If the Fed’s independence is compromised, how will the markets react?