CITIC Securities: Niezależność Fedu może być utrzymana podczas kadencji Powella

ChainCatcher News, according to Golden Ten Data, a research report by CITIC Securities states that it is expected that the case of "Trump dismissing Cook" may eventually be brought before the US Supreme Court. During the legal proceedings, Cook is expected to retain his position as a member of the Federal Reserve Board.

The market has developed a "muscle memory" regarding the crisis of the Federal Reserve's independence. After the news of "Trump dismissing Cook" broke out, the market reaction was almost identical to the "knee-jerk reaction" on July 16 when "Trump dismissed Powell". The US Treasury yield curve steepened, US stock futures and the US dollar index fell, and gold prices rose.

After Cook responded through his lawyer, the market reaction somewhat stabilized. The outcome of this event still requires a decision by the US legal process. We believe that the independence of the Federal Reserve can still be maintained during Powell's tenure.