▸ Wall Street reacts in muted fashion after Trump threat to fire Fed’s Cook▸ Investors sell long-dated Treasuries but buy shorter-term US debt▸ European stocks fall on prospect of renewed political turmoil in FranceUS stock markets were muted yesterday despite President Donald Trump's renewed attacks on the country's central bank.Trump said on Monday evening that he would fire US Federal Reserve governor Lisa Cook, “effective immediately”. Cook has said she will remain in her post and challenge any attempt to remove her.Despite warnings that Trump's move could undermine the ability of the world's most important central bank to control inflation, equity markets were little changed.The blue-chip S&P 500 index was flat by early afternoon in New York while the Nasdaq Composite was 0.2 per cent higher.“The muted initial reaction to this escalation may reflect Trump's prior comments foreshadowing the move, as well as limited conviction on whether Trump has the legal grounds to follow through on the threat,” said Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management.
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