‘Sell America’ trade returns, albeit in modest form
The US dollar, Treasuries, and stock market indices are all trading slightly lower this morning after the Trump administration stepped up its assault on the Federal Reserve, launching a criminal investigation into Chair Jerome Powell’s management of a headquarters renovation project. According to a highly unusual video statement published last night, the Chair said he had received grand jury subpoenas from the Justice Department that threaten a criminal indictment in a case that most market participants see as part of an effort to reduce the Fed’s independence and push monetary policy into more accommodative territory. “This is about whether the...