Analyst: Trump's Attempt to Dismiss Powell Could Trigger a Surge in "Stagflation Trades"
Evercore ISI analysts have pointed out that if the Trump administration attempts to dismiss Federal Reserve Chair Powell, it will lead to a surge in "stagflation trades," although they consider such a move "less likely." The institution noted that volatility in the bond and foreign exchange markets has shown a decline in market confidence in Trump's economic policies, but there are still no signs that the market has lost confidence in the Fed—the expected inflation indicators remain low.
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