Trump’s Rate Demands Threaten Fed’s Independence, Fueling Market Uncertainty

UBS has cautioned that Donald Trump’s renewed demands for lower interest rates could undermine confidence in the Federal Reserve’s independence, a concern that markets are increasingly sensitive to. UBS analysts emphasize that the impending slowdown in the U.S. economy is primarily driven by rising uncertainty rather than high interest rates. This uncertainty affects businesses and households by dampening their confidence in future economic conditions, making even modest borrowing costs insufficient to stimulate spending or investment

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