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market – you can intimidate everybody”.Three decades later, Carville’s remarks still ring true.Rising bond yields have a unique ability to exert power over politicians. Just think of Liz Truss’s mini-Budget crisis and the sackings, about-turns and resignations that followed a surge in borrowing costs.Yet one world leader so far seems immune to the bond market’s menace: Donald Trump.US 10-year Treasury yields have risen from 3.8pc to 4.2pc over the past 12 months, yet the president so far shows no sign of curbing his ambitions.The latest move that has unnerved investors is Trump’s vow to sack Federal Reserve governor Lisa Cook over allegations of mortgage fraud, which she has denied.It is part of a broader assault on the central bank’s independence as Trump seeks to bend the Fed to his will.The issue is “definitely gaining investor traction”, according to James Bilson, a fixed-income strategist at FTSE 100 fund manager Schroders.“We are seeing markets begin to price in moves in the direction of institutional weakening – the politicisation of the Fed.”Bond yields fell at the end of last week after Jerome Powell, the Fed’s chairman, hinted rate cuts were on the way.But yields have gyrated this week as Trump has escalated his feud with Cook, who has refused to go and has launched a legal challenge to the president’s dismissal letter.Investors fear that political capture of the Fed, once Powell’s term of office expires next May, will allow Trump to push down interest rates at the expense of tackling inflationary forces.Ultimately, that will force higher interest rates further down the line to address the problem.US Treasury yields gyrated this week as Trump escalated his feud with Fed governor Lisa Cook - Al Drago/Bloomberg“If Trump succeeds, we will get higher expected inflation, which may sound abstract, but it translates into higher interest rates on car loans, mortgages, student loans, business loans, and certainly Uncle Sam will pay more,” former IMF chief economist Ken Rogoff told the BBC this week.He warned the world faced an “incredibly destabilising” period if Trump succeeded in watering down Fed independence.David Roberts, head of fixed income at Nedgroup Investments, says investors are “extremely worried [about the] politicisation of the Fed”.“Too cheap money will stoke future inflation,” he adds.In her lawsuit challenging Trump, Cook’s lawyers argued that the president’s power grab at the Fed could do “irreparable harm” to the central bank in the pursuit of “short-term political interests”.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,460.26 -41.60 (-0.64%)Dow 3045,544.88 -92.02 (-0.20%)Nasdaq21,455.55 -249.61 (-1.15%)Russell 20002,366.42 -11.99 (-0.50%)VIX15.36 +0.93 (+6.44%)Gold3,516.10 +41.80 (+1.20%)PortfolioSign in to access your portfolioSign inTop gainersAMBA Ambarella, Inc. 82.48 +11.85 (+16.78%)IREN IREN Limited 26.48 +3.44 (+14.93%)BABA Alibaba Group Holding Limited 135.00 +15.43 (+12.90%)AFRM Affirm Holdings, Inc. 88.46 +8.47 (+10.59%)DOOO BRP Inc. 62.98 +5.49 (+9.55%)Top losersMRVL Marvell Technology, Inc. 62.87 -14.36 (-18.60%)CHA Chagee Holdings Limited 19.11 -2.89 (-13.14%)RMBS Rambus Inc. 73.77 -7.32 (-9.03%)DELL Dell Technologies Inc. 122.15 -11.90 (-8.88%)BLSH Bullish 59.03 -5.40 (-8.38%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 0.00 (0.00%)OPEN Opendoor Technologies Inc. 4.4500 +0.1800 (+4.22%)NVDA NVIDIA Corporation 174.18 -5.94 (-3.30%)LCID Lucid Group, Inc. 1.9800 -0.0900 (-4.35%)MRVL Marvell Technology, Inc. 62.87 -14.36 (-18.60%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBABA Alibaba Group Holding Limited 135.00 +15.43 (+12.90%)ORCL Oracle Corporation 226.13 -14.19 (-5.90%)BTC-USD Bitcoin USD 108,569.75 -969.62 (-0.89%)^GSPC S&P 500 6,460.26 -41.60 (-0.64%)^IXIC NASDAQ Composite 21,455.55 -249.61 (-1.15%)Top economic events