Attempts to force the Federal Reserve’s hand would likely see cost of US borrowings surge
Interference by Trump with the Federal Reserve risks a US economic crisis, potentially triggering a surge in borrowing costs and retaliation from the bond market. While US trade policy has garnered international attention, the implications of US fiscal policy, including high government borrowing and rising national debt, are less scrutinized. Continued faith in the Federal Reserve's ability to manage inflation currently keeps interest rates on US debt relatively low.
