Earlier this week the US Fed eased interest rates under pressure from President Trump. There are host of confusing signals around employment and price stability, but the Fed jumped anyway. The bond market sold-off – a polite growl that was just enough to warn it’s not happy about political interference and potential policy mistakes. When it barks.. it will be for good reason.

This will be the last FOMC as we knew them. From here on, a politicised Fed will be dancing to the President’s tune. That may be a good thing – but probably not. It may prove great news for markets, but a route to economic stagnation. It may also trigger a correction.

This week will be about Jay Powell – how will Trump deal with the resolute Fed chairman? Experience suggests badly. As the effects of tariffs on the US economy begin to bite, and the weakness of Trump’s negotiating positions become increasing clear.. fewer and fewer folk will be talking about buying-the-dip.

A sure sign of just how nervous markets are is volatility and judder moments – the realisation that things aren’t what you thought they were. Who knew a bond bear market was upon us, and interest rates are unlikely to fall? Who knew the Chinese AI Deepseek can do what OpenAI can do at a fraction of the cost?

This is shaping up as another tense week on the ongoing uncertainty of the US Election. Harris or Trump? Equally important - will either win the whole suite of White House, Senate and Congress, avoiding political gridlock, but potentially unleashing a deluge of uncertainty on the US Bond market?