Source: Paul Krugman
by Paul Krugman
“After markets closed Wednesday, financial news sites were full of talk about a ‘global bond rout.’ The headlines were over the top: long-term interest rates were up, but not all that much. Call it ‘Apocalypse Not Yet.’ And as I write this, rates have retreated again in the aftermath of a jobs report that strongly suggests a weakening labor market. Still, market movements since Donald Trump announced that he was (probably illegally) firing Lisa Cook from the Federal Reserve’s Board of Governors offer a preview of what to expect if the courts allow Trump to destroy the Fed’s independence. Spoiler: Not good.” (09/04/25)
https://paulkrugman.substack.com/p/cooking-the-federal-reserves-credibility