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If Trump fires the Fed’s Powell ‘both the currency and the bond market can collapse,’ according to Deutsche Bank (fortune.com)

submitted 4 days ago by babysandpiper@sopuli.xyz to c/economics@lemmy.world

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If Trump gets his way and removes Jerome Powell as chairman of the U.S. Federal Reserve, the market reaction would be swift and brutal, Deutsche Bank’s George Saravelos argues.

It could collapse the currency and bond markets, he says in a note seen by Fortune. Polymarket puts the chances of a Powell ouster at 19%.

“We consider the removal of Chair Powell as one of the largest underpriced event risks,” Saravelos says.

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[–] shortwavesurfer@lemmy.zip 1 points 3 days ago

While that is a possibility, there are a lot of incredibly intelligent people who do their absolute best to make sure that that does not happen.

And just like Bitcoin, upgrades are only deployed after they have been thoroughly vetted and torture tested to hell.