Core Viewpoint - The Trump administration's criminal investigation into the head of the Federal Reserve raises concerns about the independence of the U.S. central bank, which is crucial for economic stability [1] Group 1: Historical Context of Central Bank Independence - The Federal Reserve gained operational independence in 1951, following inflation issues that highlighted the limitations of previous monetary policies [3] - Political pressure, notably from former President Nixon, contributed to inflation in the 1970s, emphasizing the need for central bank independence [4] - By the end of the 20th century, 80-90% of the world's central banks had operational independence, as noted by the Bank of England [5] Group 2: Impact of Independence on Inflation - The last 30 years of low inflation have been attributed to various factors, including central bank independence, which has been linked to lower inflation levels and volatility [6] - In the UK, the uncertainty regarding inflation decreased by a factor of four after the Bank of England became independent in 1997, compared to the previous two decades [7] Group 3: Challenges to Central Bank Independence - The global financial crisis of 2007-09 tested the support for independent central banking, as it was associated with failures by central banks and regulators in managing banking system risks [8]

Central Bank Independence - Global central banks have issued a joint statement expressing "full solidarity" with US Federal Reserve chair Jerome Powell, emphasizing the importance of central bank independence for economic stability [1][2] - The statement was signed by nine central bank governors, including those from the Bank of England and the European Central Bank, coordinated by the Bank for International Settlements [3] Support for Jerome Powell - The signatories praised Powell's "integrity" and commitment to the public interest, highlighting his respected status among colleagues [4] - Powell has faced criticism from President Trump for not cutting interest rates quickly enough, leading to tensions between the two [4][5] Legal Threats and Investigations - Powell stated that he is facing potential criminal indictment from the US Department of Justice, which he described as an unprecedented action related to monetary policy pressures from the administration [5][6] - The investigation is reportedly linked to allegations of "abuse of taxpayer dollars" concerning renovations at the Fed's headquarters [8] Political Reactions - Some Republican lawmakers have expressed concern over the legal actions against Powell, with Senator Thom Tillis stating he would not confirm any Fed nominee until the legal matter is resolved [9] - Former Fed chairs have condemned the threats against Powell, warning of potentially negative consequences for monetary policy and economic stability [9][10]

Core Viewpoint - Eleven central bankers globally expressed full support for U.S. Federal Reserve Chair Jerome Powell amid escalating tensions with President Trump, who is threatening criminal investigations against the Fed [1][2]. Group 1: Central Bankers' Support - The statement from central bank leaders emphasized Powell's integrity and commitment to public interest [2]. - The independence of central banks is highlighted as essential for maintaining price, financial, and economic stability, which is crucial for the citizens they serve [3]. Group 2: Political Tensions - The conflict centers around Powell's congressional testimony regarding the costs of Fed building renovations, with Powell labeling the administration's threats as "pretexts" for undermining the Fed's control over interest rate policy [3]. - Trump's ongoing criticism of Powell and the Fed for not cutting rates quickly enough raises concerns about the potential politicization of the Fed, which could harm its credibility in managing inflation and lead to higher investor demands for U.S. Treasurys [4]. Group 3: Signatories of the Statement - The statement of support was signed by various central bank leaders, including Christine Lagarde (European Central Bank), Andrew Bailey (Bank of England), and others from Sweden, Denmark, Switzerland, Australia, Canada, South Korea, Brazil, and the Bank for International Settlements [5].

Core Viewpoint - A group of former Federal Reserve chairs, Treasury secretaries, and prominent economists expressed support for Fed Chair Jerome Powell, alarmed by the Justice Department's threat of criminal prosecution against the central bank, which they view as an unprecedented attack on its independence [1][2]. Group 1: Concerns Over Central Bank Independence - The criminal inquiry into Fed Chair Jay Powell is seen as an attempt to undermine the Federal Reserve's independence, which is crucial for effective monetary policy [2]. - Janet Yellen emphasized that the investigation compromises the central bank's independence and described the situation as "extremely chilling" for financial markets [3]. - Concerns about the erosion of central bank independence could lead to higher bond yields, increasing borrowing costs for consumers, particularly affecting mortgage rates [4][5]. Group 2: Market Reactions and Predictions - Following the news of the investigation, markets showed volatility, with stocks wavering and slight declines in the dollar, Treasurys, and US equities futures [3]. - Predictions suggest that the criminal investigation may unify the Federal Reserve around Powell, potentially isolating any new nominee for Fed chair and complicating future monetary policy [7][8].

Market Performance - Stocks experienced a decline with the Dow Jones Industrial Average falling by 260 points, or 0.5% [1] - The S&P 500 index decreased by 0.1%, while the Nasdaq Composite saw a slight increase of 0.1% [1] Bond Yields - The yield on the 2-year Treasury note increased to 3.55% [1] - The yield on the 10-year Treasury note rose to 4.2% [1] Precious Metals - The price of gold increased by 2.3% [1] - Silver prices saw a significant rise of 6.6% [1] Investor Sentiment - Concerns regarding central bank independence, fueled by the Trump administration, have led to increased investor anxiety [1]

The joint stipulation marks a tepid ending to an eight-year court battle between the SEC and former company executives that left Elliott, who served as the international mining business’ finance chief for 11 years before departing in 2013, as the final holdout. Elliott currently serves as chair for mental health service researcher Prudence Trust, and as Chairman and CIO for the Venice in Peril Fund, according to his LinkedIn profile.“Mr. Elliott denied the allegations from the outset and, after eight years ...

Fed Chair Jerome Powell is confronting an unprecedented institutional crisis, as the Department of Justice initiated a criminal investigation into his conduct regarding Federal Reserve headquarters renovations – a move that fundamentally challenges the central bank independence at a critical juncture in his tenure. Powell delivered a rare and direct public response through an unusual Sunday evening video statement, in which he characterized the probe as a pretext to coerce monetary policy decisions toward ...

Core Viewpoint - The dollar declined and U.S. equity futures fell following comments from Federal Reserve Chair Jerome Powell regarding threats from the Trump administration, raising concerns about the independence of the central bank [1] Group 1: Market Reactions - S&P 500 futures decreased by 0.5% [1] - European futures dropped by 0.1% during the Asia morning session [1] - The dollar fell approximately 0.2% against most major currencies, trading below 158 yen and at $1.1660 per euro [1]

Federal Reserve Governor Christopher Waller, who is on the short list to succeed Fed Chair Jerome Powell next year, said on Wednesday he would "absolutely" defend the central bank's independence if it were challenged by a U.S. president. ...

you're going to uh be meeting with the president later today. And first of all, yeah, it's what that we reported that. Um I want to thank you for continuing to keep your appointment at this for this conversation, which other people might have otherwise.Uh but um I'd like to say the president called me into a pre-in, but that's not precisely what happened. The president has said that he thinks he ought to have a say in interest rates. Um I imagine he might say that to you. I wonder if you might share your re ...