UBS On-Air: Paul Donovan Daily Audio ’Scapegoating the Federal Reserve’

US President Trump issued a letter purporting to fire Federal Reserve Governor Cook—an unprecedented action. After recent comments, investors will inevitably view this as an assault on Fed independence. There are obstacles—Trump already appointed a majority of Fed governors, without changing policy independence. If the dismissal survives the courts, the Senate must confirm any successor. Fed presidents still have policy votes. Faith in these checks may limit the negative market reaction.