PANews reported on April 21 that according to JOE, the US stock market plummeted, and US President Trump continued to criticize Powell on Monday, calling on the Federal Reserve chairman to cut interest rates. Increasing signs suggest that Trump's trade war is pushing the US economy towards recession. The US dollar fell along with long-term US Treasury bonds. Trump stated on his social media platform that he supports "preemptive rate cuts" and arbitrarily called the Federal Reserve chairman a "loser". Since last week, Trump has been continuously "bombarding" Powell, raising the question: Can the Federal Reserve maintain its independence and remain free from political influence? This concerns people's confidence in the US financial markets. JOE Saluzzi, joint managing director of institutional trading, said, "The market does not want the Federal Reserve's independence to be challenged. The market can at least try to predict what an independent Federal Reserve would do. If the Federal Reserve's independence is challenged, it may make more unstable (unpredictable) decisions. The market does not like unpredictability."
Analysis: The US "triple kill" of stocks, bonds and currencies may stem from the market's doubts about the independence of the Federal Reserve
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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