Trump's aggressive stance on the Fed fuels market unease over Treasury moves

Analysts contend that President Trump’s relentless pressure on the Federal Reserve is eroding market trust. Treasury Secretary Bessent, shortly after his confirmation, allowed the cryptocurrency DOGE to interface with the Treasury’s $6 trillion-a-year payment system and permitted the IRS to share confidential tax information with immigration enforcement, both actions later halted by federal judges. He then announced a large-scale Treasury bond buyback intended to cut long-term rates, but the move backfired as bond yields rose.

Meanwhile, Fed pick Kevin Warsh struggled to articulate a clear inflation-fighting plan, and Trump’s claim that the Fed board is “political” and his attempt to fire a board member added to investor anxiety. An economic adviser to former presidents warned that any rate cuts are unlikely before the election, while new tariffs on Canada threaten to push inflation higher.