The latest example is the S&P 500’s amazingly mild reaction to an SOS that Federal Reserve Chair Jerome Powell sent out Sunday night. Powell’s distress signal took the form of a written statement and video emailed to reporters and posted on the Fed’s website in which Powell said that the Justice Department was threatening to indict him over some testimony he gave before the Senate Banking Committee last June about the cost of renovating the Fed’s headquarters. This, Powell explained, was “not about my testimony,” nor “about the renovation of the Federal Reserve buildings,” nor “about Congress’s oversight role”:
Translation: Hey markets, if you’ve contemplated freaking out about President Donald Trump’s sustained assault on Fed independence, this would be a good moment to do so.
The good news, I suppose, is that the stock market doesn’t appear to believe there’s any legitimacy to the Justice Department’s investigation of Powell. If it did, it would be worrying that the Fed is controlled by a crook. An understanding that the Justice Department is weaponized to punish Trump’s enemies appears to be baked in to its calculus. The Justice Department hardly keeps that a secret; it created an office with the bracingly un-euphemistic name Weaponization Working Group, headed by the MAGA hack Ed Martin. Still, that DOJ is persecuting the federal government’s most consequential financial regulator ought to give stock market investors pause. It doesn’t.
The Powell investigation was reportedly urged on by Bill Pulte, the Madame Defarge-like director of the Federal Housing Finance Agency, to whom Bessent famously once said, “Fuck you! I’m gonna punch you in your fucking face!” Pulte stated publicly on July 2 that he believed Powell’s testimony about the Fed renovations was sufficiently deceptive to justify a “for cause” removal, the only removal Trump can legally effect against a Fed chair.
Not all the markets were impervious to Powell’s harassment by DOJ goons. The dollar, which is down 8.3 percent over the past year—that is, more or less since Trump took office—dropped steeply Monday morning before rising a bit in the afternoon. The yield on 30-year Treasury bonds, which has been rising since October, spiked Monday morning. That’s a sign that fewer people wish to buy them. Why purchase dollars or Treasury bonds when the president is so determined to lower their value that he’s willing to throw the Fed chair, who’s been lowering interest rates lately but not fast enough to suit Trump, in jail? Over the course of the afternoon, however, bond yields fell, leaving them about where they closed Friday.
Gold futures contracts now stand at a record high. We really have entered a Gilded Age, figuratively, in the dominance of billionaires in our politics; literally, in the price of gold; and symbolically in Trump’s conversion of the Oval Office into an ersatz pharoah’s tomb. It can’t last, and it won’t, but I’ve given up predicting when it all goes bust.
Hence then, the article about the market met jerome powell s warning with deep denial was published today ( ) and is available on The New Republic ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( The Market Met Jerome Powell’s Warning With Deep Denial )
Also on site :