Why bond markets haven't reacted to the DOJ's Powell investigation — yet

As we continue to assess potential fallout from the Department of Justice investigation into the Federal Reserve and Chair Jerome Powell — and the implied ramp-up in pressure to lower interest rates more swiftly — one might expect dramatic bond market moves in response. But so far, that hasn’t happened.

“Frankly, Trump is probably frustrated that the bond market didn’t react, if he’s paying attention,” Wendy Edelberg, senior fellow at the Brookings Institution, told “Marketplace” host Kai Ryssdal. “Markets don’t think what Trump did ensures more rate cuts this year, and that surprises me.”

Click the audio player above to hear their full conversation about Fed independence, the bond market’s non-reaction, and more.