Pimco, PGIM See Risk Trump’s Fed Fight Will Drive Up Rates

At big bond firms like Pacific Investment Management Co., PGIM and DWS Group, money managers warn that President Donald Trump’s assault on the Federal Reserve’s independence is at odds with his goal of pulling down interest rates.

By threatening to undermine the central bank’s inflation-fighting credibility, they say, his administration is injecting a major new risk into financial markets. And as long as it lingers, traders will likely keep Treasury bond yields higher than they otherwise would be — in turn elevating the cost of mortgages, businesses loans and other forms of credit.