President Trump’s calls for Powell’s resignation prompt investors to protect portfolios against inflation risk. A Fed chair friendlier to rate cuts could lead to a weaker dollar, higher volatility, and increased borrowing costs. Markets fear eroding Fed independence and potential wild asset moves. Trump continues to push for Powell’s exit, causing Treasury yields to rise and inflation expectations to increase.

Powell’s resignation could lead to a steepening yield curve and higher long-term rates. Fed minutes show little support for rate cuts, but Trump persists in calling for Powell’s exit. Bond investors anticipate rising inflation pressures. Market concerns grow over potential Fed independence erosion and Powell’s possible firing.

White House probes Fed headquarters renovation costs, escalating criticism of Powell. Market fears intensify over Powell’s potential firing. Powell states he will serve until 2026, but market worries persist. Analysts see low risk of ousting Powell but fear a shadow Fed chief. Investors prepare for potential Fed independence erosion.

Despite low odds of Powell resigning, analysts see risk of a shadow Fed chief influencing policy. Treasury Secretary seeks Powell replacement. Market fears Fed independence erosion but remains focused on economic forecast. Investors incorporate potential Fed changes into portfolios. Dimon warns against playing with Fed independence, citing adverse consequences.

Asset manager positions for steeper yield curves amid rate cut expectations and growing deficits. Economic justification, technical support, and political landscape favor steeper yield curve positioning. Stock boost from lower rates may be overshadowed by pressure from higher long-term rates. Equities could face global investor capital outflow trend if Fed independence is compromised.

Market analysts warn of instability if Fed independence is questioned. Potential for less stable monetary environment if Fed independence is undermined. Powell’s resignation could lead to unstable monetary conditions. Investors brace for potential impact on markets from Fed independence concerns. Global investor capital outflow trend may accelerate if Fed independence is compromised.

Read more at Yahoo Finance: Analysis-Investors seek protection from risk of Fed chief’s ouster