Global investors and economists remain on edge over US President Donald Trump’s flirtation with firing Federal Reserve Chair Jerome Powell, despite markets making a quick comeback.
Stocks and the dollar stabilized after Trump denied plans to fire Powell over the central bank’s hesitancy to cut interest rates. “The immediate crisis may have passed, though we doubt we are entirely done with this saga,” JPMorgan’s chief US economist said.
The perception of a possible incursion into the Fed’s independence has spooked countries and companies abroad — as well as Wall Street CEOs — given that economic turmoil in the US could upend the global economy, The New York Times wrote.