US markets climbed Monday despite the Trump administration’s escalated attacks on the Federal Reserve.
Several former policymakers and Fed chiefs came out against the federal investigation into Chair Jerome Powell, calling it an “unprecedented attempt to use prosecutorial attacks to undermine that independence.”
But with Powell’s term ending in May, traders don’t expect the probe to impact immediate interest rate decisions.
There’s “too many good things” happening short term to spark a selloff, one strategist said.
Still, the investigation sends a warning to Powell’s successor that Trump “intends to take control of the central bank, no matter what the law or the courts say,” The Wall Street Journal’s chief economics commentator wrote.
