【Trump VS Powell: Interest Rate Cuts Have Cooled, Insults Have Heated Up, US Treasury Yields Soared to 4.2%!】
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A "hawkish rate cut" has thoroughly angered the market.
The Federal Reserve just announced a 25 basis point rate cut, and before the words could settle, Treasury yields surged to 4.2%! Why? Because the dot plot shows there may only be this one cut before 2026 — the market was instantly stunned: this is not easing, it’s clearly a covert brake!
Trump immediately took the stage with his artillery: "Powell! Interest rates are too high! You're going to ruin the economy!" He added a sharp jab: "Is your building renovation still going over budget by 2.5 billion? I’m keeping track of that!" The implication: if you don’t obediently cut rates significantly, forget about the chair position in 2026.
Powell adjusted his glasses, and internally, he must have been in turmoil. After all, he only has 5 months left in his term, and the political pressure is directly hitting him in the face. Strategists are eating popcorn while warning: if the Federal Reserve's independence is breached, long-term yields might really soar to 4.5% — inflation expectations + risk premium, this combined punch the market can’t handle.
US Treasury yields find themselves helpless: I don't want to rise either, but political drama is playing out every day, what can I do?
Now the situation has turned into: rate cut expectations have cooled, political firepower is fully unleashed, and yields remain high. All thanks to Trump’s daily passionate "shouting" for presence, the market is jumping in fear.
Finally, a soul-searching question:
When Powell truly steps down in May 2026, will the treasury market celebrate with fireworks, or will it be crying in the exchange?
We await your decision in the comments!👇
