Analysis: If Trump fires Powell, it could undermine the independence of the Federal Reserve or directly trigger an economic recession

According to BlockBeats, on April 20th, Evercore ISI analysts stated that any attempt by the Trump administration to dismiss Federal Reserve Chairman Powell "would lead to a surge in stagflation trading," but the implementation of the dismissal is "unlikely. The movements in the bond and foreign exchange markets indicate that the market has lost confidence in Trump's economic policies. However, there is currently no sign that the market has lost confidence in the Federal Reserve, as indicators of expected inflation remain at low levels. Any action that undermines the independence of the Federal Reserve will lead to a surge in long-term yields due to inflation risks, a sharp steepening of the yield curve, a sharp drop in the US dollar, and a comprehensive rise in various risk premiums, including stock risk premiums, which could directly trigger an economic recession. (Golden Ten)