President Donald Trump’s power grab at the Federal Reserve has sounded alarms across the monetary policy world – but not in one corner of the bond market where they might have made a difference.

Investors aren’t pricing in higher inflation for the US, the one big danger that experts see looming when central-bank independence gets eroded. Market-based measures of price pressures are down from July peaks, and roughly in line with their two-year average. Medium- and long-term gauges are within shouting distance of the Fed’s 2% target.

That’s despite unprecedented moves by the administration to gain influence over interest rates. Trump has escalated his battle to fire a Fed governor to the Supreme Court, after months of demanding lower borrowing costs and hinting he could dismiss Chair Jerom

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