Trump’s Attack on Federal Reserve Risks Raising Bond Yields, Borrowing Costs and Threatening Fed Independence, Says Bill Dudley

President Donald Trump has launched an unprecedented and escalating attack on the Federal Reserve, raising concerns that his approach could backfire by increasing long-term borrowing costs and bond yields in the US financial markets. Analysts and former officials, including Bill Dudley, former president of the New York Federal Reserve, warn that Trump's pressure on the central bank risks undermining its independence and could damage US economic credibility. The moves influenced by Trump are already pushing up key interest rates that affect consumers, with market observers noting that the threat to the Fed's autonomy is being underestimated. This situation poses potential challenges to monetary policy and the broader economy.