Trump's interference in the Federal Reserve worries experts about inflation, but the bond market remains unfazed.

President Donald Trump's interference in the Federal Reserve has sounded alarm bells throughout the field of monetary policy, but a corner of the bond market that could potentially be affected has remained unfazed. Experts worry that if central bank independence is eroded, inflation in the United States may rise, but investors have not factored in such risks in the market. Inflation measures based on the market have fallen from their peak in July, largely in line with the two-year average. Mid-term and long-term indicators are just one step away from the Federal Reserve's 2% target. Despite unprecedented actions by the Trump administration to try to influence interest rates, the situation in the bond market remains unchanged. After months of calling for rate cuts and hinting at the possible dismissal of Federal Reserve Chairman Jerome Powell, Trump has taken his battle to the Supreme Court by attempting to dismiss a member of the Federal Reserve's Board of Governors. His team has also called for a comprehensive reform of the Federal Reserve, suggesting that it should help reduce government borrowing costs, a task that is beyond the central bank's mandate.