Blackrock strategist: There is a risk that Trump will challenge the independence of the Federal Reserve.
Odaily Planet Daily Report: Wei Li, BlackRock's Global Chief Investment Strategist, stated that US Treasury investors should consider the possibility of Trump's election as president, as Trump previously stated that if elected, he would seek to influence US monetary policy. "When we consider the possible scenarios, there is this risk," Li added, noting that fiscal issues will also affect the demand for long-term government bonds. On Thursday, Trump said the president should have some say in setting interest rates. Whether during his presidency or in his recent 2024 election campaign, Trump's challenge to the Federal Reserve's independence has broken the long-standing norm of the president not influencing the Federal Reserve's policymakers' decisions. Li said, "Regardless of who occupies the White House, all of this indicates that in the future, we need to consider portfolio construction around US Treasuries more carefully."
