BlackRock strategist: Trump risks challenging Fed independence

Wei Li, BlackRock's global chief investment strategist, said Treasury investors should consider the possibility of a Trump presidency after Trump said he would seek to influence U.S. monetary policy if elected. "There is this risk when we think about what could happen," Li said, adding that fiscal issues would also affect demand for long-term Treasury bonds. Trump said on Thursday that the president should have some say in setting interest rates. Both during his presidency and more recently on the 2024 campaign, Trump's challenges to the independence of the Federal Reserve have broken the long-standing norm that the president does not influence the decisions of Fed policymakers. "No matter who is in the White House, all of this suggests that in the future we need to think more carefully about portfolio construction around U.S. Treasuries," Li said. (Jinshi)