Market Watch (January 14)
2026/ 01/ 15 by jd in Global News
“For investors, a meaningful erosion of central-bank independence would weaken the Fed’s inflation-targeting discipline and be negative for both stocks and bonds, as markets have long operated under the assumption that Fed independence will hold.” Although “we do not expect the Trump administration to capture the Federal Reserve, continued pressure on central-bank independence is likely to weigh on the U.S. dollar.” Ultimately, “market calm is conditional on the Senate acting as a backstop to Fed independence. If that condition is misread, markets will break down.”
Tags: Bonds, Capture, Central bank, Discipline, Dollar, Erosion, Fed, Independence, Inflation, Investors, Markets, Negative, Senate, Stocks, Trump, U.S., Weaken
