If Trump fires the Fed’s Powell, ‘both the currency and the bond market can collapse’

The claim that firing Fed Chair Jerome Powell could lead to a collapse in both the currency and bond markets is based on expert analysis and market sentiment. Deutsche Bank’s George Saravelos explicitly warned that such an action would provoke a "swift and brutal" market reaction, potentially collapsing the currency and bond markets.fortune.comfortune.comIf Trump fires the Fed’s Powell ‘both the currency and the bond market can...theguardian.comtheguardian.comCan Trump fire Federal Reserve chair Jerome Powell? This view is supported by other financial institutions like EFG International, which predicts a violent reaction against U.S. Assets and capital flight abroad if Powell were removed.reuters.comreuters.comInvestors fear Trump's attacks on Powell will pile on pain

Additionally, political figures such as Senator Elizabeth Warren have warned that allowing Trump to fire Powell could cause markets to crash due to undermining the Fed's independence.cnbc.comcnbc.comMarkets will 'crash' if Trump has the power to fire Fed's Powell, Sen. Elizabeth... CNN Business and Reuters also report that global markets could react negatively, including a possible collapse in the dollar and U.S. Bonds, reflecting fears about the Fed's independence and inflation control.cnn.comcnn.comMarkets could freak out if Trump tries to fire Powell

The Guardian explains that Fed decisions impact stock markets, the dollar’s value, and government bonds, underscoring the interconnectedness of these financial instruments. While some sources note that stock markets might react differently or more speculatively, the consensus is clear about risks to currency and bond markets. The claim is nuanced by the fact that such a firing would be unprecedented and highly destabilizing because it would signal political interference in monetary policy, which investors generally view as a threat to economic stability.

Therefore, while "collapse" can be interpreted variably, the evidence strongly supports a major negative market reaction consistent with the claim’s core assertion.