The market’s reaction to Trump hides a darker fact that the American economy is at risk, and Bieber Sandler warns

Both are threatened as a result of President Trump’s escalating efforts to make the federal reserve under his direct control, according to a new warning from the Investment Bank Piper Sandler. “The United States moves from free markets, limited government, and the rule of law at an amazing pace,” the bank writes, aimed at a group of actors outside the president to accuse accusation to the exact Congress and even the markets themselves. The bank warns: “We are seeing the long roll market columns that are removed one by one,” adding that the crisis goes beyond Trump’s unprecedented attempt to launch the FBI governor.

Although this did not say explicitly, the bank targeted the American markets A series of its highest levels everEssentially warning that they will not ride to the rescue. “We do not share the investor’s perception that the markets regularly” the “political discipline”, as the bank notes, warning that “Bond Points” will not save America from the developing problem. He also argues that the crisis of the American economy greatly exceeds the attempt to shoot one, or the independence of the central bank.

Anonymous water

First of all, Piper notes that Trump made it clear that he believes that monetary policy should be in its form, and reject the independent federal reserve principle led by non -party economists. He was late at night to shoot the ruler of the Federal Reserve, Lisa Cook-a counselor to mysterious allegations of mortgage fraud-the courts have now been forced to establish unknown lands, and a test whether the president can legally purify the central bank officials.

Piper notes that the president can only shoot a member of the Board of Directors for the reason, and that accusations of mortgage fraud against Cook may rise or not rise to this level. The bank said that the Supreme Court wrote in an opinion issued in May that the Federal Reserve Bank is inherently different from other independent agencies. At this stage, it is not clear whether Trump can actually shoot cooking or whether it will remain in its role while its fate is determined. However, Piper concludes that “the judiciary does not coincide with Trump’s broader assault on the federal reserve. If the president is determined to politicize the federal reserve and will not stand in the way, then this will happen.”

While this is an unknown water for America, it is not for countries under authoritarian regimes, even those previously devoted to markets and democracy. PIPER does not draw any comparisons, but the last example of Turkey is prominent, where President Recep Tayyip Erdogan He has Follow up low interest rates Against high inflation, Central bankers launched Those who opposed, and appointed himself as a president a Sovereign wealth fund.

Frequent market failure

Piper then took an indirect goal for all financial experts who argue that for all Trump theater, Piper then took over. Huge market returns Show that work as usual is still happening. Looking at Nouriel Roubini, often known as sometimes known as the name Doctor DoomWhich has been unusual optimistic in recent years. For example, it is Tweet in April The technology sector is very dynamic: “Technology exceeds the customs tariff even if Mickey Mouse or a clown runs the United States! It does not matter and the American exceptional will remain flexible regardless of Trump given the excessive dynamic and innovation in the American private sector.”

Earlier today, Jay Philsel of the infrastructure Capital Consultant He said luckEva Ruburg“This is very positive.” He added that he was supporting Trump’s movements at the Federal Reserve: “The simple way to say is that eliminating the inefficiency of the Federal Reserve is much more important than defending alleged independence.

PIPER allows the fact that “excessive federal reserves in the federal reserve and spending” creation Inflation wave for 2022But then the markets and investors lecture for their failure to exercise any kind of discipline against them. Certainly, he says, the markets were unable to reflect the national debt worth $ 37 trillion and “the highest unnecessary deficit in the time of peace in its history”, with the United States on the right track to exceed the debt rate to the standard GDP.

The markets were not like a Pimestone on Trump in terms of tradePiper argues, noting that “more than 70 % of what Trump has promised on liberation day has started its fruits.” Moreover, it is noted that Trump is multiplying, and only last night threatens to impose a customs tariff in response to digital service taxes.

Piper says that the last gathering of markets in the possibility of discounts in prices cannot be celebrated, because these cuts came from political pressure. Piper then remembers how the markets have been noticeably ineffective and unhelpful during the greatest test of capitalism since the great depression. “This statue has not seen the great housing and financial crisis. We find a little evidence that the market is moving forward or policies.”

The role of Congress

Meanwhile, Congress shows a small mile of resistance. A few Federal Reserve candidates in Trump have been rejected by the Senate, despite concerns about their independence. The Republicans have waved, warning of Trump’s crossing, to a large extent with controversial choices. Stephen Miran is expected to be confirmed as soon as possible in the coming month – and he should give up Powell when his term ends as a chair, it is certain that Trump will get a preferred alternative. It will only take four Republican splits to prevent any candidate, but Piper Sandler noticed, “We haven’t seen a appetite to do so.

Pyper Sandler, who was rising in Wall Street, may have placed Trump’s fighting in the federal reserve as just one piece of the broader dismantling of the economic framework that supports long expansion in recent decades. The bank argues that “contracts of free trade (has been greatly reversed overnight.” He believes that the “voice money column” is mainly at risk due to Trump’s assault on the Federal Reserve, among other things. Then he recounts a series of amazing unprecedented developments.

In the summer of 2025, this is noted, we have witnessed the Republican Party, and it has long been believed to prefer the limited government, which makes the unprecedented interventions in the way to do business, including Trump’s negotiation of a government share in Intel. The bank adds, “The public effort to politicize the Federal Reserve Bank, to politicize data, is an attempt to jump on the sovereign wealth fund, and the federal government takes large shares in private sector companies, 15 % export taxes on companies, or the FBI raided critics – all of this in a whim of any meaningful legislation or criticism from Congress.” PIPER asks an implicit question: How much is America’s investment?

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