UBS Chief Economist: Concerns Over Federal Reserve Independence May Prompt Hawkish Stance

ChainCatcher News, according to Golden Ten Data, UBS Chief Economist Paul Donovan wrote that launching a criminal investigation into the sitting Federal Reserve Chair could actually help strengthen the central bank's independence. Market reactions show that investors' concerns about the Fed's ability to manage interest rates without political interference are rising. Although overall asset price volatility is limited, long-term US Treasury yields have increased and the US dollar has weakened. Donovan stated that Powell's tough stance may indicate his unwillingness to resign from the Fed Board this year.