“A political Federal Reserve risks weakening the US dollar’s reserve status”

Trump’s firings could have implications for the Federal Reserve, posted yesterday:

• Is Trump building the foundations to fire Fed Chair Powell and other Fed members?

Check that post out for background if you haven;t seen it already.

UBS took note, bolding is mine:

• Yesterday, US President Trump sought to fire the two Democrat commissioners on the Federal Trade Commission. If successful, this might become a precedent that could challenge the political independence of the Federal Reserve.
• If the president can dismiss Fed members, only the Senate confirmation process will serve as a check on politicization.
• Markets may not view that as robust. A political Federal Reserve risks weakening the US dollar’s reserve status.

This could be a slow-burn issue, or perhaps not one at all. Something to keep an eye on.

This article was written by Eamonn Sheridan at www.forexlive.com.