Fed Independence Threatened as JPMorgan Trading Unit Cautious on US Stocks

BlockBeats News, January 12th. J.P. Morgan's Securities Trading Division stated that the recent impact of the Trump administration on the Fed's independence poses a threat to the U.S. stock market, at least in the short term. News of a criminal investigation into the Fed rocked the U.S. market on Sunday night, leading to a drop in stock index futures and the U.S. dollar, with funds flowing into safe-haven assets such as gold.

J.P. Morgan's Global Market Insights Director Andrew Taylor said, "Despite macro and corporate fundamentals supporting a tactically bullish stance, the risk to the Fed's independence has created a suppressive factor at the market's top end, so we remain cautious in the very short term. The risk to the Fed's independence could drive U.S. markets to underperform in the short term." (FXStreet)