According to Golden Finance, US President Trump cited the cost of federal debt as a new reason to urge Powell to cut interest rates last month. But a new analysis shows that firing the Fed chairman and forcing him to lower interest rates is futile. Deutsche Bank's Chief US Economist Matthew Luzzetti and others wrote that replacing Powell would not change the Treasury's debt interest costs. Trump has repeatedly called for a 3 percentage point interest rate cut, stating that it will save over $1 trillion. However, according to the calculation of the team of Deutsche Bank, although the yield of short-term treasury bond bonds has declined, the yield of long-term treasury bond bonds has risen. This is because people worry that more obedience of the Federal Reserve will mean higher inflation. Specifically, if Trump fires Powell, the Treasury Department can only save $12 billion to $15 billion by 2027.
