Market analysis: Trump's intervention in the Fed may backfire, pushing long-term US bond yields to higher levels.

U.S. President Donald Trump's unprecedented and fierce attacks on the Federal Reserve could have the opposite effect, causing long-term interest rates to rise and dealing a blow to the financial markets and the economy. For weeks, Trump has repeatedly criticized Fed Chairman Jerome Powell, accusing him of not significantly cutting interest rates to stimulate the economy and, in Trump's view, not reducing the government's debt burden. Although Powell has hinted at preparing to begin easing monetary policy as early as next month, long-term interest rates have remained high for various other reasons. Even more worrying is that a Fed loyal to the president may cut rates too much and too quickly, potentially jeopardizing the central bank's anti-inflation credibility, ultimately leading to even higher long-term interest rates, squeezing the economy and possibly disrupting other markets.