FED UNDER FIRE $BTC
Powell: DOJ threat used to force rate cuts. This is not about renovations. It's about Fed independence.
White House and Fed clash ignites fears about political influence on US monetary policy. Jerome Powell claims DOJ actions are a pretext to force rate cuts. This echoes the 1970s, when political pressure on the Fed led to economic damage and lost confidence. Powell insists the Fed must decide rates based on economic conditions, not political demands. This independence underpins trust in the dollar and US Treasuries. Dollar weakened, gold surged post-Powell's statement. Investors are highly sensitive to policy direction. The 1970s saw Nixon pressure the Fed for easier policy ahead of elections, contributing to inflation. High US debt, inflation, and deficits make Fed credibility crucial now. Loss of trust means higher borrowing costs, regardless of fundamentals. Powell dismisses White House claims that this is just oversight. He stands firm on independent decision-making.
Disclaimer: This is not financial advice.
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