Economist: The Politicization of the Federal Reserve Is Intensifying
According to a report by Jinse Finance, Su-Lin Wong, Chief Economist for Australia and New Zealand at RBC Capital Markets, stated that the politicization of the Federal Reserve has intensified in recent months, exacerbating the higher risk premium in the United States. Rising budget deficits and debt, unpredictable government actions, and investors reassessing their US dollar exposure have all contributed to this premium. Although the reflexive response to recent developments involving Cook has had a slightly positive impact on the front-end yields of US Treasuries, this effect is unlikely to persist if, under pressure from a Trump administration, the Federal Reserve ultimately compromises and cuts rates while inflation remains elevated.
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