Trump's Fed Battle Sparks Inflation Risk Concerns

The battle between President Donald Trump and the Federal Reserve (Fed) over interest rates has raised concerns about the potential threat to bond markets.

Trump's latest move is aimed at removing Fed Governor Lisa Cook, citing allegations of mortgage fraud. However, Cook's attorney has described the accusations as baseless.

The timing of Trump's push could have significant implications for the upcoming Fed meeting on September 15-16, with futures markets putting the probability of a quarter-point rate increase before the November midterm elections at about 75%.