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Market Watch
34 days

Trump may be testing the waters by threatening to fire Fed’s Powell. Why he’s playing a dangerous game. - MarketWatch

1. Trump's firing plan for Powell caused initial market volatility. 2. TMUBMUSD30Y yield rose to 5.021%, reflecting ongoing bond market concerns. 3. Investor confidence may be wavering due to Trump's controversial decisions. 4. Long yields could rise further if Trump loses bond market confidence. 5. Meddling with the Fed's independence risks severe market backlash.

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FAQ

Why Bearish?

Market confidence in the bond market could diminish if Trump persists with threats. Historical examples illustrate that such political instability often correlates with rising long-term yields.

How important is it?

The article highlights significant political concerns affecting bond yields, especially for TMUBMUSD30Y. Political decisions by Trump create a volatile environment for fixed-income investors.

Why Short Term?

Uncertainty around Trump's actions could lead to immediate fluctuations in TMUBMUSD30Y. However, a longer-term trend remains to be seen.

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