🚨 Political shock in the U.S.! President Trump publicly tried to dismiss Federal Reserve Governor Lisa Cook over alleged mortgage fraud. Cook, protected by her 14-year term, firmly rejected the move and says she's here to stay.
Why it matters? The Fed's power comes from staying above political squabbles. Think of it like your favourite app n you trust it updates based on solid data, not a random tweet. By throwing shade at the Fed's independence, the White House has stirred up serious doubts about the dollar's reliability.
Markets aren't sleeping on this. Stocks, bond yields and currency rates have already shown jitters. When investors can't predict U.S. monetary policy with confidence, global asset prices get a hit, and cross-border money flows hit pause.
Asian and European big players are watching closely. If rate decisions feel driven by politics rather than inflation or growth data, the Fed's signals lose their clarity. That's bad news for anyone counting on a stable financial forecast.
Even more game-changing? The dollar's crown as the world's top reserve currency is on the line. Central banks hold dollars because they trust a politically neutral Fed. Now, talk of political purges could open the door for more local currency settlements or a boost for the euro or yuan.
Bottom line: Young investors in Mumbai, Jakarta or Manila should keep an eye on this space. Currency diversification, digital assets or regional trade in local money might be the next big wave if dollar stability takes a hit. Stay curious, stay informed! 🔍💡
Reference(s):
Trump's assault on the Fed: A blow to dollar credibility and stability
cgtn.com
