Wall Street is afraid that we are looking at the end of the Federal Reserve Independence

Until January, this madness was supposed to be considered. This year, it’s the new normal.

“I think it is not more accurate than (Powell) wakes up every day and may go to bed every night you think,” What can I do to keep the institution? ” He told Wall Street Journal.

Wall Street analysts indicate that all of this drama contains serious risks to the American bond, dollar and asset market in general. If Trump reaches his way, and the monetary policy ends in its management by people who will do what he wants – as it is in exchange for maintaining full employment and low inflation – then investors expect to rebound.

“In the broader context, investors may worry about whether the Federal Reserve still has an independent appearance. In the Fiat currency system, confidence is essential, and even the emergence of independent policy or data is dangerous – in this case, it also threatens the role of the US dollar reserve.”

Indeed, the bond market started in Nashil. Jim Reed and his team in Deutsche said that the most sustainable reaction was in gold (+0.98 %): “The news was a reminder of the continuous concerns about the independence of the Federal Reserve in the future and the risks of financial domination, although the market’s reaction was somewhat modest. The most sustainable reaction in gold (+0.98 %) was.” “The dollar index decreased by two of their tenths after the news, but it returned to a little change (-0.05 %) at the closure. The front revenues decreased by 3-4 inches per second, but this step came amid a wider mood of the risks early in the session and also reflected at a later time.”

This does not seem very dangerous – but it is a reminder that the bond market will transfer prices very quickly if he does not like what he sees.

“The renewed political pressure on the Federal Reserve (Fed) disturbs the markets and dangers weighing the US dollar,” said George Vice from “Colga Vice”. “The possible exit of Cook will lead to the amplification of voices in the occurrence of FOMC and the deepening of the interior departments, which increases the uncertainty about the course of the federal reserve policy.”

The dollar indicates throughout the year that investors are ashamed of American assets more than it was. It decreased by 9.45 % on an annual basis on the DXY index of foreign currencies. To put it in its right perspective, in late 2022, at its peak, the dollar and the British pound approached – but it did not reach the equal. The dollar was worth 92 People. Today, the dollar buys only 74 Pence.

She did not like stock investors either. The S&P 500 decreased for a third day in a row yesterday, lost 0.24 %.

Deutsche said that the Trump campaign against the Federal Reserve may have opposite results. And their team said: “If the concerns about the threats suffering from increased independence, Powell can choose the rest of the board of directors (which ends in 2028) even after his term with the end of the president in May.”

So what will Powell say tomorrow?

“Inflation is still on the front stove of Federal Reserve officials, where the customs tariffs are still risking the economy and reception in inflation. The rate of effective tariffs on imports increased to about 16 % in August from 11 % of last month, where the majority was set to land on consumers. The labor market is a wild card.”

Despite inflation and weak labor market, Powell may note that the September prices are still on cards, according to Coldman Sachs. “We do not expect him to significantly refer to a reduction in September, but the speech must show the markets that it is likely to support one,” David Merikli and others told customers.

Here is a snapshot of the market before the opening bell in New York:

• S & P 500 futures contracts 0.26 decreased this morning, Premark, after closing the index by 0.24 % yesterday.
• Stoxx Europe 600 0.33 % decreased in early trading.
• FTSE 100 in the United Kingdom 0.27 % decreased in early trading.
• Japan Nikki 225 0.65 % decreased.
• China CSI 300 It was 0.39 %.
• South Korea Cuban It was 0.37 %.
• Elegant India 50 It increased by 0.13 % before the end of the session.
• Bitcoin He decreased to 113.8 thousand dollars.

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