JPMorgan Trading Desk Adopts "Cautious" Stance on US Stocks Following News of Fed Investigation

Odaily News JPMorgan's securities trading department stated that the Trump administration's recent latest assault on the Federal Reserve's independence poses a threat to the US stock market, at least in the short term. News of the Federal Reserve facing a criminal investigation hit US markets on Sunday evening, leading to declines in stock index futures and the US dollar, with funds flowing into safe-haven assets like gold. Andrew Tyler, Head of Global Market Intelligence at JPMorgan, said: "Although macro and corporate fundamentals support a tactical bullish stance, the risks to the Fed's independence create a cap over the market, so we remain cautious in the very near term. Risks surrounding Fed independence could drive US markets to underperform in the short term." (Jin10)