So it seems like President Trump’s goal is to lower the federal interest rate.
If the federal interest rate goes down, bond prices should go up, right? (Making bonds a good investment currently).
However, I am also hearing news about a “selloff” of U.S. bonds by the Chinese government. And I think the thinking here is that this is bad for bond prices because as other countries lose faith in the U.S. government, demand for the bonds will go down.
So in a hypothetical situation, where Trump fires Jerome Powell and forces the lowering of the federal interest rate…
Are bonds a good investment to be in before this happens?