💨 Abstract

In April, investors reacted negatively when President Trump hinted at firing Federal Reserve Chairman Jerome Powell, seeing it as a threat to the central bank's independence. By July, Trump showed a draft dismissal letter to legislators, but markets seemed unfazed, with brief reactions in the dollar and bond markets that quickly recovered. This suggests two possibilities: either market sentiment has changed, or the independence of the Federal Reserve is no longer as crucial as previously thought.

Courtesy: WTOP Staff