According to JPMorgan’s securities division, recent government actions and a criminal probe into the Fed have impacted markets, raising concerns over central bank independence and near-term U.S. stock volatility.
JPMorgan’s securities division cautioned that recent measures by the Trump administration could undermine the Federal Reserve’s independence, posing short-term risks to U.S. stock markets. On Jan. 12, news broke of a criminal investigation into the Fed, which triggered declines in stock futures and the U.S. dollar and boosted gold demand. The warning underscores heightened market sensitivity to political interference in monetary policy.