Concerns are growing about the independence of the U.S. Federal Reserve, fueled by former President Donald Trump's plans to exert control over regional banks, potentially influencing key policy appointments.
Critics warn that such moves could threaten the Fed's autonomy, casting a shadow over its commitment to maintaining economic stability.
London financial markets reacted negatively, with stocks closing slightly lower as investors grapple with the implications of possible political interference in monetary policy.
Heavyweight financial stocks took a hit, reflecting mounting anxiety among investors amid these unsettling developments.
The prospect of legal battles surrounding Trump's attempts to oust Fed Governor Cook adds another layer of uncertainty, impacting broader market trends.
As traders assess these political dynamics, gold prices have also fallen, highlighting the market's heightened sensitivities to the evolving situation.
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