CITIC Securities: The Federal Reserve's independence can still be maintained under Powell's tenure

ChainCatcher news, according to Golden Ten Data, a research report from CITIC Securities stated that the case of "Trump dismissing Cook" is expected to eventually be brought before the US Supreme Court. 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 Federal Reserve's independence crisis. After the news of "Trump dismissing Cook" broke, the market reaction was almost identical to the "knee-jerk reaction" to the July 16 news of "Trump dismissing Powell." The US Treasury yield curve steepened, US stock futures and the US dollar index fell, and gold prices rose.

After Cook responded through his lawyer, the market reaction somewhat stabilized. The outcome of this event still awaits a decision through the US legal process. We believe that the Federal Reserve's independence can still be maintained during Powell's tenure.