BlackRock strategist: Trump poses a risk to the independence of the Federal Reserve

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On August 9th, Jinshi Data News, Wei Li, the Chief Investment Strategist of BlackRock, stated that US Treasury investors should consider the possibility of President Trump being elected. Previously, Trump stated that if elected, he would seek to influence the US monetary policy. 'There is this risk when we consider possible scenarios,' Li added. Fiscal issues will also affect the demand for long-term government bonds. Trump stated on Thursday that the president should have some say in setting the interest rate. Whether during his presidential term or in the recent 2024 election campaign, Trump's challenge to the independence of the Federal Reserve has broken the long-standing norm that the president does not affect the decisions of the Fed policy makers. Li said, 'Regardless of who takes office in the White House, all of this indicates that in the future we need to carefully consider the construction of investment portfolios around US Treasuries.'

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