awaysaway comments on If Trump fires the Fed’s Powell ‘both the currency and the bond market can collapse,’ according to Deutsche Bank

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

submitted 1 year 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.

[–] awaysaway@sh.itjust.works 11 points 1 year ago (6 children)

what is the upside for MAGA of devaluing USD?

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[–] explodicle@sh.itjust.works 12 points 1 year ago

They want to destroy America because corporate centrists already destroyed their rural communities.

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[–] wise_pancake@lemmy.ca 11 points 1 year ago

Stock market numbers go higher

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[–] Typotyper@sh.itjust.works 9 points 1 year ago

American manufactured products are cheaper on the world market.

Raw resources are more expensive to import so source everything form the US

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[–] match@pawb.social 4 points 1 year ago

making more money is good, but lowering the worth of your workers is another way to afford more people

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[–] Ushmel@lemmy.world 3 points 1 year ago

Easier to pay down debts made up of worthless money (if you have money that isn't worthless). If you had €100 in November 2024, you could pay off $100 debt. Right now you only need €85 to pay off $100 debt.