Federal Reserve Independence Concerns Pose Short-Term Threat to U.S. Markets

According to BlockBeats, on January 12, JPMorgan's securities trading division indicated that recent actions by the Trump administration against the Federal Reserve's independence pose a short-term threat to the U.S. stock market. News of a criminal investigation involving the Federal Reserve impacted U.S. markets on Sunday night, leading to declines in stock index futures and the dollar, while investors turned to safe-haven assets like gold. Andrew Taylor, head of global market intelligence at JPMorgan, stated that although macroeconomic and corporate fundamentals support a tactical bullish stance, the risks to the Federal Reserve's independence are a limiting factor for the market. As a result, they are maintaining caution in the very short term. The risks surrounding the Federal Reserve's independence could cause the U.S. market to underperform in the near term.