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Stock impact report

Donald Trump's ‘intimidation' of Powell tests Fed credibility, risking investor exit from U.S. assets [CNBC]

Barclays PLC (BCS) 
Company Research Source: CNBC
The probe raises questions over the central bank's independence from Donald Trump's White House and concerns over the credibility of Powell's successor. One analyst told CNBC that the probe was Trump threatening Powell with “the Maduro option,” a reference to the Venezuelan president seized by the U.S. military last weekend. The criminal investigation into Federal Reserve Chair Jerome Powell is testing the U.S. central bank's independence again and reinforcing the view among global investors that they need to diversify away from U.S. assets. “That's what seems to be transpiring this morning,” Julien Lafargue, chief market strategist at Barclays Private Bank, told CNBC's “Europe Early Edition” on Monday. Futures on the S&P 500 Dow Jones Industrial Average and the Nasdaq all moved lower on Monday after the Department of Justice opened an investigation into the $2.5 billion renovation of the Fed's headquarters. Powell called the probe “a consequence of the Federal Reserve sett Show less Read more
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