A growing financial storm could hit the US dollar and Treasuries if President Donald Trump removes Federal Reserve Chair Jerome Powell from his post. According to Deutsche Bank, this scenario is being severely mispriced by the market,

As a result, the long standing abhorrence to a central bank, advocated as early as Thomas Jefferson’s administration and by much of rural America was overcome. At the request of President Woodrow Wilson,

The market has taken the US threat of 30% tariffs on the EU and Mexico in stride. The dollar is narrowly mixed against the G10 currencies. Equities are mostly weaker today. Read more

President Donald Trump publicly insults Federal Reserve Chair Jerome Powell, angry over unchanged interest rates.

Sonders added, "You also have to remember that a scenario under which the Fed is cutting, say, seven times in 2026, would be a backdrop of not much inflation tied to tariffs or otherwise, but probably significant weakening in the labor market. So it's sort of a be careful what you wish for."

For investors and traders trying to game out where the US economy, the stock market or interest rates are headed in the second half of 2025, good luck. There’s simply too much uncertainty to be sure of anything right now.