The Federal Reserve's independence is under attack, JPMorgan's trading division holds a "cautious" attitude towards US stocks

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On January 12, JPMorgan Chase’s securities trading division stated that the recent impact of the Trump administration on the independence of the Federal Reserve at least poses a threat to the US stock market in the short term. News of the Federal Reserve facing criminal investigations shocked the US markets on Sunday night, causing stock index futures and the dollar to decline, with funds flowing into safe-haven assets like gold. Andrew Tyler, Head of Global Market Intelligence at JPMorgan Chase, said: “Although macro and corporate fundamentals support a tactical bullish stance, the risks to the Federal Reserve’s independence create a ceiling on the market, so we remain cautious in the very short term. The risks surrounding the independence of the Federal Reserve could drive the US market to underperform in the short term.” (Jin10)

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