U.S. Bond Market Stays Stable as Fed Chair Faces Dismissal Threat
With Trump's shifting rhetoric and stance on U.S.-China trade, market confidence in the stability of the U.S. bond market is waning. Recently, U.S. stocks saw gains; however, pressure from the 20-day moving average remains, keeping investors cautious about future trends.
In a recent report, Council of Economic Advisers Chairman Hassett remarked on the possibility of dismissing Fed Chair Powell, increasing uncertainty in the market. According to the Federal Reserve Act, Fed Board members, including the chair, can only be dismissed for 'just cause,' making Trump's threats unlikely to materialize.
Facing expectations of interest rate cuts, market focus is shifting to capital flows. As U.S. bond yields surge, both U.S. stocks and the dollar are under pressure. The market suggests gold prices could soar to historical highs as central bank policies shift, prompting investors to remain adaptable.
