President Donald Trump has launched an unprecedented and escalating attack on the Federal Reserve, raising concerns about potential negative impacts on financial markets and the broader economy. Analysts warn that this aggressive stance risks increasing long-term borrowing costs in the United States. The criticism of the Fed's monetary policy could undermine confidence in the dollar's credibility and stability, potentially pushing key bond rates even higher. Experts highlight that compromising the independence of monetary policy may deter long-term rates from falling, which could have adverse effects on economic growth and financial conditions.
Trump's assault on the Fed: A blow to dollar credibility and stability #CGTNOpinion https://t.co/a4l7mRImvO https://t.co/9IkJqkRJKF
Trump’s Fed Gamble Risks Pushing Key Bond Rates Even Higher https://t.co/TMj47uGkkM
President Donald Trump’s unprecedented & escalating attack on the Federal Reserve runs the risk of backfiring by hitting financial markets and the economy with higher long-term borrowing costs. https://t.co/YFZAE7d4Vo If you compromise monetary policy, why should long rates fall?