If Trump fires the Fed’s Powell ‘both the currency and the bond market can collapse,’ according to Deutsche Bank
FortuneMonday, July 14, 2025 at 3:14:12 PM
Deutsche Bank is warning that if former President Donald Trump were to fire Federal Reserve Chair Jerome Powell, it could trigger a catastrophic financial meltdown—sending both the U.S. dollar and bond markets into freefall. The bank laid out this doomsday scenario in a research note ominously titled "What if?", suggesting such a move would destabilize confidence in the Fed’s independence and send shockwaves through global markets.
Editor’s Note: This isn’t just Wall Street alarmism—it’s a stark reminder of how fragile trust in institutions like the Fed really is. If a president starts meddling with central bank leadership for political reasons, markets could panic, borrowing costs might spike, and the dollar’s dominance could waver. For everyday folks, that could mean everything from higher mortgage rates to a weaker paycheck if the economy tanks. Deutsche Bank’s warning is basically saying: Don’t poke the bear.
— Curated via WP Now’s
