Core Viewpoint - Economists warn that financial markets have not fully absorbed the risks posed by Trump's attacks on the Federal Reserve, including high inflation and loss of investor confidence in U.S. Treasury bonds [1][2]. Group 1: Impact on Federal Reserve Independence - Trump's intervention raises concerns that the Fed's ability to control inflation through interest rate setting may be compromised [2]. - A survey of 94 economists indicates that many fear a permanent shift in the Fed's priorities towards employment and reducing government borrowing costs after Powell's term ends [2][4]. - 52% of surveyed economists expect a shift in the Fed's policy focus towards employment and government borrowing costs at the end of Powell's term, potentially at the expense of price stability [4]. Group 2: Economic Outlook and Risks - 42% of respondents believe Trump's attacks could unleash strong inflationary pressures, while 35% see loss of investor confidence in U.S. Treasury bonds as a significant risk [7]. - Only one respondent believes that Trump's attacks on Fed independence will not pose a substantial risk to the U.S. economy [10]. - Economists generally agree that a weakened Fed independence could harm the largest economy, with implications for lower and more stable inflation and financial stability [6]. Group 3: Market Reactions - 82% of respondents think that financial markets have only partially or slightly absorbed the impact of the White House's interference with the Fed, while 12% believe the markets have not absorbed these attacks at all [10]. - Market reactions to the firing of Fed Governor Lisa Cook were muted, contrasting with previous strong investor responses to threats against Powell [10].