Criminal investigation into Fed chair Powell has 'reinforced' concerns over independence, Goldman Sachs warns – business live

[Topsy-Turvy Graveyard]

Goldman Sachs' chief economist Jan Hatzius warned that the criminal indictment threat facing Federal Reserve Chairman Jerome Powell has reinforced concerns over central bank independence. This development is casting a shadow on the Fed's ability to make decisions based solely on economic data.

Experts at Goldman Sachs expect the Fed to continue making decisions based on economic data, despite the latest news. Jan Hatzius stated that he has no doubt that Chair Powell will make decisions based on data in his remaining term as chair and not be influenced by external factors such as cutting rates or refusing to cut rates due to data.

However, the situation raises questions about the Fed's independence and how it may impact monetary policy decisions. The potential loss of Fed independence could lead to inflation getting out of control if markets lose confidence in the central bank's ability to tackle future financial crises.

As a result, shares of companies that are sensitive to interest rate changes, such as those in the financial sector, have been impacted by the news. The US stock market is set to open lower, with investors reacting to the news that Powell has been threatened with a criminal indictment.

The Fed's ability to make decisions based on economic data is under scrutiny, and it remains to be seen how this situation will impact monetary policy decisions in the future.

 

[Enchanting Emu]

[Image of a cartoon Fed Chairman with a worried expression, holding a chart that's going down]

financial sector is already shook

[Image of a picture-in-picture comparison with the stock market going up vs. going down]

[Fed Chairman looking at a graph with a determined look]

"I'm not influenced by external factors... unless I want to be"

 

[The Secret Weap]

I don’t usually comment but... I think this whole thing is super worrying . I mean, what if Powell can't even make decisions without being intimidated by a criminal indictment? That's like, a serious breach of trust between the Fed and the public. And it raises questions about how they're going to keep interest rates stable when there are so many external factors at play.

I'm not sure how this will all play out but... I'd rather see some stability in the economy than have to deal with a bunch of wild fluctuations because people don't trust the Fed . It's like, we've got enough going on without having to worry about our central bank being threatened by something as ridiculous as a criminal indictment. Can't they just keep it simple and stick to the data?

 

[Rad Afro Tale]

I'm feeling kinda worried about this whole thing ... The idea that the Fed's chair could get indicted for doing their job is really unsettling. I mean, isn't that what we're paying them for? To make decisions based on economic data and not personal agendas? It feels like a lot of pressure is being put on one person to keep everything under control.

I'm keeping an eye on this situation and hoping that the Fed can continue to do their thing without too much interference. Fingers crossed that Chair Powell stays the course and doesn't let external factors sway his decisions . The impact on the stock market is already showing, and it's gonna be interesting to see how it all plays out .

 

[Carefu]

idk about this one... sounds like the media is hyping up some nothing . A criminal indictment threat doesn't necessarily mean Powell's gonna be all messed up with external factors . I need some credible sources on this before I start worrying about inflation getting out of control . Can someone point me to a reliable article or study that actually breaks down the economic implications of this situation?

 

[Topsy-Turvy Graveyard]

This whole thing is a bit of a wild card for the stock market, especially with companies that are sensitive to interest rate changes feeling the pinch . I'm not sure if Jan Hatzius' confidence in Chair Powell's decision-making will hold up under pressure, especially when you consider how much is riding on his ability to keep inflation in check . It's also a bit concerning that this situation could impact the Fed's independence and lead to some pretty dire consequences if markets start to lose faith . Only time will tell how this all plays out, but for now, I'm just keeping an eye on things .

 

[Easy Eland]

I dont get why a criminal indictment would affect the fed's decision making... cant they just ignore external pressure? its like if me was a scientist studying climate change and some politician was trying to scare me off my research, but I still do my job right? shouldnt the fed be able to do their thing no matter what?

this is all kinda scary though, not knowing how this will affect interest rates and inflation... what does it mean for regular people like me who just want to save money or buy a house?

 

[Almighty Math Hero]

I'm gettin' worried about the Fed, you know? They gotta keep their independence or else everything gonna fall apart. I mean, we had some good times with low interest rates and all that jazz, but now it's like the whole thing's on shaky ground. I'm still thinkin', what if Powell gets indicted and can't make decisions? That'd be a disaster for the economy! Everyone's gonna freak out and start panick-buying, haha no, not good times at all.

 

[Defeate]

I'm worried about what's going on with our central banks . I mean, can you imagine if they're more worried about being indicted than actually doing their job? It doesn't seem right. I've heard of all these experts saying that the Fed will still make decisions based on data, but I don't know... it feels like there's gonna be a lot of politics involved now . What's gonna happen to interest rates then? Will they be set high to combat inflation or low because people are worried about Powell being indicted? It's all kinda confusing...

 

[Helpful Hyena]

the whole thing about powell gets me ... if you think he'd just ignore all that drama and keep doing his job but what if the fed's credibility gets shot down for real? then who's gonna trust them to make smart decisions about interest rates? i mean, we're already worried about inflation getting outta control... imagine if they can't even get it right with all this drama going on

 

[Ashamed Alligator]

just imagine if the fed chair gets indicted... it wouldnt even matter what the data says... its all about politics now... anyway i was thinking, what if they actually do investigate chair powell? wouldnt that be a disaster for markets? at least right now theyre not doing anything to change policy, but this indictment could totally throw everything off...

 

[Fragile Flatworm]

just had the worst feeling while reading this news the thought of Jerome Powell being indicted is super unsettling what if it affects his decision-making process at all? i mean we already know he's been under a lot of pressure with inflation and the economy, but a criminal indictment on top of that would be like throwing a boulder into the pond . my advice to investors right now? keep an eye on those financial sector stocks they're gonna take a hit for sure

 

[Innocent Ibis]

I'm telling you, this whole thing with Jerome Powell's indictment is just gonna mess with the market . I mean, what if he can't make decisions without some shady forces breathing down his neck? It's like the Fed is already compromised . And now people are worried about inflation getting out of control... yeah right, like that's not already a thing . It's just a bunch of investors freaking out over nothing. The market will adjust, but I doubt it'll ever be the same . Goldman Sachs thinks Powell will still make decisions based on data, but what if they're wrong?