The growing tension between Donald Trump and the Federal Reserve has revealed unexpected weaknesses in the United States institutional system. The clash, marked by the attempt to dismiss a director of the Central Bank, exposes the limits of the institution’s autonomy.
According to analysis by Samuel Pessôa, researcher at BTG Pactual and Ibre-FGV in WW, Institutional deterioration is already beginning to have economic impacts.
The dollar has recorded a devaluation of approximately 10% this year, signaling one that affects the Central Bank.
Test to institutional limits
They have evidenced that US institutions are more dependent on the self -restarting of political actors than previously imagined. The current situation shows that there is considerable margin for the weakening of these fundamental structures.
A possible judicialization of the case involving the Fed Director may represent a crucial test for the maintenance of the Central Bank’s institutionality. It is expected that the judiciary can act as a counterweight, ensuring the stability of the system.
The financial community is carefully awaiting the next developments, especially considering the proximity of command exchange in the Fed. The episode has generated concerns about the autonomy of the Central Bank and its possible impacts on the global financial market.
