Trump vs the Federal Reserve: How the clash reached uncharted territory

Reasoning: An unprecedented DOJ probe and sustained presidential attacks on the Fed chair increase policy uncertainty and risk to central bank independence, which typically weighs on risk assets and raises volatility.

Reasoning: The article documents an unprecedented and escalating confrontation between the President and Federal Reserve Chairman, including a criminal DOJ investigation into Powell. This institutional conflict creates significant policy uncertainty and undermines central bank independence, which typically generates market volatility and risk aversion.

Reasoning: The unprecedented criminal investigation into Fed Chair Powell, described as politically motivated, severely threatens the independence of the central bank and introduces significant political and economic uncertainty, which markets typically react to negatively.