JPMorgan economist Michael Feroli said that if Trump wins the US election in November, the financial marekt could become the main resistance to his control of the Federal Reserve. While Trump can apply pressure by replacing Federal Reserve Chairperson Jerome Powell, the move could provoke a strong market reaction, driving up the cost of borrowing Treasury bonds and threatening the status of the dollar as a reserve currency. Feroli pointed out that market opposition could limit Trump's interventi...
JPMorgan Chief Economist Michael Feroli said he still expects rates to be cut faster than the Fed consensus. If the next two jobs reports are further weak, there will be a 50 basis point rate cut at the next meeting in early November.