Trump moves on the Fed, Italy warns ‘fin-fluencers’: Global Express

💡 DMK Insight

Trump’s criminal charges against the Fed head could shake market confidence significantly. Traders should be wary of how this political maneuvering might influence monetary policy and interest rates. If the market perceives this as a threat to the Fed’s independence, we could see volatility spike across equities and forex markets. A lower interest rate environment is generally bullish for risk assets, but the uncertainty surrounding these charges could lead to a flight to safety, impacting gold and the USD. Watch for any shifts in Fed communications or market reactions in the coming days, especially around key economic indicators like inflation data or employment reports. If the charges escalate tensions, we might see a test of key support levels in major indices. Here’s the flip side: if the market brushes off these charges as political theater, we could see a quick rebound in risk appetite. Keep an eye on the S&P 500 and its 50-day moving average as a critical level to watch for potential breakouts or breakdowns.