๐จ FED FACES PRESSURE: "SELL AMERICA TRADE" BEGINS TO BE PRICED IN
A wave of former Fed chairmen, former U.S. Treasury secretaries, and top economists have publicly defended Federal Reserve Chair Jerome Powell against the risk of criminal investigation. The message is clear: legal intervention into the Fed crosses a dangerous precedent.
According to this group, the Trump administration using legal tools to pressure the Fed undermines the independence of monetary policyโthe core foundation of the USD's credibility for decades. Even last year, Treasury Secretary Scott Bessent warned that any attempt to remove Powell could trigger a financial market shock.
Market reactions are becoming increasingly evident. On Wall Street, the concept of the "Sell America trade" has emerged:
โ DXY weakens
โ Gold, silver, Bitcoin, and stocks all rise
๐ Analysis: When investors begin to doubt the Fed's ability to act independently amid political pressure, the USD is no longer a default safe haven. Capital flows into scarce and higher-risk assets. This is not a short-term reaction, but a re-pricing of trust.
#GlobalMacro
A wave of former Fed chairmen, former U.S. Treasury secretaries, and top economists have publicly defended Federal Reserve Chair Jerome Powell against the risk of criminal investigation. The message is clear: legal intervention into the Fed crosses a dangerous precedent.
According to this group, the Trump administration using legal tools to pressure the Fed undermines the independence of monetary policyโthe core foundation of the USD's credibility for decades. Even last year, Treasury Secretary Scott Bessent warned that any attempt to remove Powell could trigger a financial market shock.
Market reactions are becoming increasingly evident. On Wall Street, the concept of the "Sell America trade" has emerged:
โ DXY weakens
โ Gold, silver, Bitcoin, and stocks all rise
๐ Analysis: When investors begin to doubt the Fed's ability to act independently amid political pressure, the USD is no longer a default safe haven. Capital flows into scarce and higher-risk assets. This is not a short-term reaction, but a re-pricing of trust.
#GlobalMacro