Global Financial Markets on Edge Amid Trump's Fed Attacks
President Donald Trump's continued criticism and actions against the U.S. Federal Reserve raise concerns about global financial stability. ECB policymaker Olli Rehn warns these moves could undermine the Fed's independence and have significant international consequences. Efforts are encouraged to bolster confidence in the euro and maintain central bank autonomy.
President Donald Trump's escalating offensive against the U.S. Federal Reserve could generate far-reaching impacts on global financial markets, noted ECB member Olli Rehn during a recent speech.
Rehn indicated that heightened uncertainty surrounds the Federal Reserve due to Trump's numerous critiques of its Chair, Jerome Powell, and the firing of Governor Lisa Cook. According to Finland's central bank governor, Trump's pressure for interest rate cuts jeopardizes the Fed's historically independent status.
Rehn urged European initiatives to strengthen confidence in the euro, underscoring concerns over central bank autonomy. He warned, despite the dollar's current strength, that any erosion of democratic principles could alter global economic power dynamics.
(With inputs from agencies.)
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