Powell’s exit would hit the dollar and bonds hard

Donald Trump aims to remove Federal Reserve Chair Jerome Powell, which may destabilize the financial markets. Trump’s actions signal a desire for aggressive policy changes that may have significant repercussions.

Deutsche Bank’s George Saravelos warns that Powell’s removal might cause a sharp decline in the dollar and Treasuries, reflecting a severe mispricing of risks by the market.

Despite tariff threats and Powell’s uncertain future, markets remain calm. Historical patterns indicate potential declines post-mid-July, stressing the need for caution among traders.