Fed warning: Rate cut rally or credibility crisis?JPMorgan and Goldman Sachs have both raised their concern about political interference at the Federal Reserve, amid reports that President Trump considered firing Fed Chair Jerome Powell earlier this week.
In a note titled “How Safe is Powell’s Job?”, JPMorgan analysts warned that even the perception of a politically motivated dismissal could undermine the Fed’s credibility and spark market volatility.
Goldman Sachs CEO David Solomon echoed the concern in a CNBC interview, describing central bank independence as “super important,” and warning that it remains a pillar of global economic stability that “we should fight to preserve.”
The warnings followed a volatile 24-hour period in markets, after reports emerged that Trump had drafted a letter to dismiss Powell and floated it among Republican leaders. This might prove the right distraction from the Epstein client list?
