CITIC Securities: The independence of the Federal Reserve can still be maintained during Powell's tenure

ChainCatcher news, according to Jinshi Data reports, Citic Securities research report states that the case of "Trump firing Cook" is expected to ultimately go to the U.S. Supreme Court, and during the legal proceedings, Cook is expected to retain his position as a Federal Reserve Board member.

The market has developed a "muscle memory" regarding the crisis of Federal Reserve independence. After the news of "Trump firing Cook" broke, the market reaction was similar to the "knee-jerk reaction" seen on July 16 when "Trump fired Powell." The U.S. Treasury yield curve steepened, U.S. stock futures and the dollar index fell, and gold prices rose.

After Cook responded through his lawyer, the market reaction calmed down. The outcome of this event still needs to be determined by U.S. legal proceedings. We believe that the independence of the Federal Reserve can still be maintained during Powell's tenure.