Economists: The politicization of the Fed is becoming more severe.

[Economist: The Politicization of the Fed Is Getting Worse] Wang Sulin, chief economist at Royal Bank of Canada Capital Market in Australia and New Zealand, said that the politicization of the Fed has been worsening in recent months, exacerbating the high risk premium in the United States. The rising budget deficit and debt, the unpredictable government, and investors reassessing their exposure to the dollar have all intensified this premium. Although the reflexive reaction to the Cook situation has had a slight positive impact on the front-end yields of treasury bonds, this situation will not last if the Fed ultimately compromises under pressure from the Trump administration and cuts interest rates against the backdrop of persistently high inflation.