Federal Reserve & Administration Conflict - The administration desires a lower interest rate policy and wants the Federal Reserve to cut interest rates by 200 to 300 basis points [2] - Concerns exist that the administration is applying political pressure on the Fed to lower interest rates, potentially using supervisory requirements and even headquarters renovations as leverage [3] - The market is questioning the Fed's independence from the administration, impacting perceptions of its autonomy [6][7] - A potential solution is for the White House to tone down its rhetoric regarding the Fed [8] Market Impact & Bond Market Reaction - Long-term bonds sold off when news initially suggested the president planned to fire Fed Chair Jerome Powell [6] - Prices for long-term bonds rebounded when the president indicated he was not planning to fire the Fed chairman [7] - The bond market is questioning the Fed's resilience to political pressure and its ability to maintain control of monetary policy [11] Jerome Powell's Position - Mohamed El-Erian suggested that Chair Powell should resign to safeguard the Fed's operational autonomy [5] - Powell is expected to face tough questions at the upcoming Fed meeting regarding political considerations in setting interest rate policy [9][10] - The key question for Powell is whether he feels compelled to hold interest rates steady in the face of political pressure [10]

Trump wants a new Treasury-Fed accord, putting interest rate policy under White House control.Bitcoin’s already up 167% as rates climbed from 0.25% to 4.5%.If we slash rates again to devalue the debt? There is no ceiling for Bitcoin.[B2YB @JoinHorizon_] https://t.co/DBRHrEbxfB ...

Philippe Laffont, Coatue founder and portfolio manager, joins 'Squawk Box' to discuss the latest market trends, state of the 'Magnificent Seven', future of tech investing, his thoughts on bitcoin, state of the economy, impact of AI technology, who'll come on top in the AI arms race, the Fed's interest rate policy, future of TikTok, the NYC mayoral race, and more. ...