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Market Underestimates Risk of Powell’s Ouster, Deutsche Bank Warns

Market Underestimates Risk of Powell’s Ouster, Deutsche Bank Warns

Published:
2025-07-12 17:18:02
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BTCCSquare news:

Deutsche Bank's FX strategist George Saravelos warns markets are mispricing the political risk to Fed Chair Jerome Powell's position. Former President Trump's push for aggressive rate cuts and potential Fed leadership changes could trigger a 3-4% dollar plunge and 30-40bps Treasury yield spike within hours.

The crypto-based prediction market Polymarket currently assigns less than 20% odds to Powell's removal, suggesting complacency among investors. Saravelos emphasizes such an event WOULD constitute an unprecedented challenge to Federal Reserve independence, potentially destabilizing global financial markets.

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