Anthony Willis, a senior economist at Columbia Threadneedle Investments, pointed out that the threat of criminal prosecution against Chairman Jerome Powell over cost overruns at the Federal Reserve headquarters "could be the most immediate threat to market sentiment at present." The economist stated, "We have seen in the past that any concerns about the Fed's independence trigger adverse reactions in financial markets." Powell has strongly rebutted the allegations, suggesting the issue is unrelated to cost overruns and potential fraud, but is rather aimed at applying sustained pressure for further interest rate cuts. Willis emphasized, "A perceived loss of the Fed's independence by the markets is a significant hidden danger for financial markets."
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