Is the Fed’s independence under threat?

? Trump vs. Powell: How pressure on the Fed could shake the global economy

Former U.S. President Donald Trump’s push to oust Federal Reserve Chair Jerome Powell has become a hot topic in economic and political circles.

We’ve covered this recently.

According to CNN, such interference in the Fed’s operations could threaten the stability of not just the U.S. economy, but the global financial system as a whole.

What’s going on?

Trump continues to criticize Powell for being either “too dovish” or “too hawkish,” depending on the market mood. Now, according to insider reports, he’s once again considering removing Powell from his position.

This kind of pressure from the executive branch undermines the principle of Fed independence – a cornerstone of global trust in the U.S. dollar and its economy.

Why does it matter for the world?

Experts cited by CNN warn that:

• Loss of confidence in the Fed could trigger capital flight from U.S. markets and weaken the dollar.
• Market volatility could spike as investors begin to price in political risk over fundamentals.
• Gold and cryptocurrencies may see increased demand as alternative assets.
• Global financial flows could be disrupted, as the dollar is used in 80% of international transactions.

? In simple terms:

If the Fed becomes a puppet of the president, it’s like giving the keys to the bank vault to someone who keeps forgetting the PIN code.

And global markets don’t laugh at jokes like that.