Concerns over the independence of the U.S. Federal Reserve have sent shockwaves through London markets, causing stocks to dip amid investor anxiety.
Former President Donald Trump is reportedly contemplating a strategic move to tighten his control over the Federal Reserve by taking charge of regional banks.
If implemented, this plan could enable the Trump administration to influence key appointments on the Fed’s policy-setting committee, a move critics view as a serious threat to the central bank's autonomy.
The rising tensions between the White House and the Federal Reserve are exemplified by Trump's efforts to challenge Fed Governor Cook, sparking fears of a legal showdown.
As these developments unfold, gold prices have taken a hit, reflecting market uncertainty surrounding the potential clash of power between the administration and the Fed.
Investors are on high alert, aware that these political maneuvers could have significant repercussions for U.S. monetary policy and global financial stability.
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