Wall Street Strategists See More Unease on Fed Independence (1)

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 ...