Gold and silver surge, stocks & USD slammed on news of Trump's ongoing attacks on the Fed

Trump's Escalation Against the Fed

Trump is intensifying his attacks on the Federal Reserve, which has led to significant market reactions. Recent reports indicate that federal prosecutors have commenced an investigation involving Fed Chair Powell, raising concerns about the scrutiny of renovation costs at the Fed's headquarters. Such political pressures could undermine the perceived independence of the Fed, particularly as the transition to a new chair in 2026 approaches.

Market Reactions

In response to this political turmoil, gold and silver prices have surged, while both the stock market and the USD have declined. Trump's confrontation with the Fed appears to be unfavorably impacting stock sentiment. Currently, the USD is lower against major currencies, with the Euro, Australian Dollar, British Pound, New Zealand Dollar, Swiss Franc, and even the Japanese Yen appreciating. This trend suggests that investors are flocking to gold and silver amidst growing concerns over the Fed's independence.

Conclusion

Trump's ongoing attacks may significantly influence market direction, with potential for continued inflows into gold and silver. Investors should closely monitor these developments as they unfold.