The investigation into Powell has sparked concerns in the market about inflation and the credit rating of the United States.
Analysts from Sweden's Nordic SEB Bank pointed out in a report that the US government's investigation of Federal Reserve Chairman Jerome Powell has sparked long-term concerns in the market about inflation and may also affect the US credit rating. The analysts stated that this incident could increase risk premiums, suppress the US dollar exchange rate, and potentially put upward pressure on long-term US Treasury yields. Powell had previously stated that the US Department of Justice issued a subpoena to the Federal Reserve last Friday and threatened to bring criminal charges against them for overspending on the construction of the Federal Reserve headquarters. Nordic SEB Bank stated, "The Federal Reserve, at least its chairman, is currently in open conflict with the White House, a situation that may not be well-accepted by the market." Data shows that the US dollar index fell by 0.3% to 98.770 points, and according to trading website data, the yield on the 10-year US Treasury rose by 2.6 basis points to 4.197%.
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