Wall Street strategists say investors are becoming more concerned about Federal Reserve independence as President Donald Trump seeks to impose his will on the central bank and pushes for interest-rate cuts.
The gold rally and a rotation to value stocks, as well as the widening spread between yields on five- and 30-year Treasuries, show that traders are betting on a pick up in inflation, according to the team at JPMorgan Chase & Co. Meanwhile, Goldman Sachs Group Inc. said that growing concerns over “US institutional credibility risks” could trigger a spike in gold.
Taken together, it’s evidence of how Trump’s ...
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