Republican senators warned Trump not to fire Fed Chair Jerome Powell, citing risks to market stability and the Fed’s independence.

A potential ouster of Federal Reserve chair Jerome Powell by U.S. President Donald Trump could "collapse" both the currency and bond markets and would lead to a spike in inflation expectations, Deutsche Bank said on Friday.

The 30-year Treasury has tumbled in July as investors mull over US inflation, the government spending outlook and the path for Fed interest-rate cuts. Last week’s consumer inflation figures sparked a selloff that pushed the 30-year yield above 5% for the first time since June. On Tuesday, it hovered around 4.95%.

Financial markets were reacting in an understandable way to conflicting reports over the future of Federal Reserve Chair Jerome Powell, and whether President Donald Trump will or won't be firing him soon.

Gold, bitcoin, and Treasury yields all rose during the market uncertainty. The drop coincided with tariff worries and President Donald Trump slamming Federal Reserve Chairman Jerome Powell again.

As the Federal Reserve marks its 75th anniversary, investors eagerly anticipate Chair Jerome Powell's address, which is expected to influence market trends.