Trump’s attacks on the Fed: what’s at stake for markets

The independence of the US Federal Reserve is facing one of its biggest tests in decades. President Trump has revived his campaign of public pressure on Fed Chair Jerome Powell, calling for aggressive rate cuts and even floating the idea of removing Powell from his role. While central banks often face criticism, analysts warn that politicising monetary policy could seriously damage confidence in US financial markets and the dollar itself. Inflation risks, higher interest rates, capital flight and market volatility all hang in the balance as the Fed seeks to chart a steady course in the face...