Volatility surged across interest rate-sensitive assets Wednesday after reports circulated that President Donald Trump may be preparing to remove Federal Reserve Chair Jerome Powell from his post. The rumors sparked fears over the Fed's independence, triggering a broad flight to gold and a sell-off in the U.S. dollar.
While Wall Street was mostly flat during midday trading in New York, traders were on edge, digesting the potential implications of a leadership shake-up at the central bank. Speculators are already positioning for a more dovish monetary path, anticipating that Powell’s possible ouster could accelerate future interest rate cuts.
