President Trump’s test to see how markets would react to firing Jerome Powell backfired as bond and stock markets fell on rumors. Trump later stated firing Powell was unlikely, citing fraud as a possible reason. The industry group is pushing for private equity and debt investments in 401(k) plans, claiming it democratizes capital markets. Private assets offer higher returns but also higher risks due to illiquidity and subjective pricing. Investors may pay higher prices for less value in the chase to access private assets. The reaction in the bond and stock markets to the rumor suggests caution in such investments.

Read more at Investing.com: Trump Tests the Waters on Firing Powell