Supreme Court Upholds Fed Independence, Restraining Trump's Influence

The Supreme Court has limited President Trump's power to dismiss Federal Reserve Chair Jerome Powell, preventing him from appointing a presidential candidate who would promote a flood of cheap money to boost the economy. This decision means that the Fed's operational independence remains intact, and policymaking will stay under current leadership until at least 2026. Consequently, the dollar is unlikely to weaken suddenly or devalue significantly, and interest rates are expected to stay stable, easing market turbulence and reducing the risk of hyperinflation. The markets responded positively, avoiding chaotic monetary stimulus, which aligns with the idea that the real influence on the economy and markets comes from institutions rather than the presidency's attempts to manipulate liquidity.