Wall Street is scared that we're looking at the end of the Fed's independence

Fed chair Jerome Powell and governor Lisa Cook have now both been referred to the Department of Justice by Trump’s political allies in the hopes that criminal charges can be brought against them. The bond market flinched yesterday at the news. Stocks sold off. And Wall Street analysts are worrying that we may be looking at the end of independent monetary policy.

To say that U.S. Federal Reserve Chairman Jerome Powell’s Jackson Hole speech will be “closely watched” tomorrow is an understatement. Powell is trying to steer the Fed through a jaw-dropping crisis: He has been referred to the U.S. Department of Justice for a criminal investigation into the mostly baseless allegation that he made misleading remarks to Congress; and yesterday Fed governor Lisa Cook was also referred to the DOJ