US equity benchmarks were little changed on Wednesday even as President Donald Trump intensified his public attacks on the Federal Reserve, renewing accusations that its interest-rate policy is hampering economic growth. The President’s latest remarks deepened concern among policy analysts about political pressure on the central bank, whose independence is regarded as a cornerstone of market credibility. Despite the rhetoric, trading desks reported limited repositioning. Chris Beauchamp, chief market analyst at IG, said investors may be underpricing the risk that sustained White House criticism could erode confidence in the Fed’s decision-making and eventually unsettle asset prices. For now, however, major indexes have held near recent levels, signaling that many traders see the dispute as political noise rather than an immediate threat to monetary policy.
With US President Donald Trump's escalating attacks on the Federal Reserve, are markets being too complacent about the threat? Chris Beauchamp from IG believes that the traders are underpricing the risk to the central bank's independence https://t.co/3nfMKLLvcy
WATCH: With US President Donald Trump's escalating attacks on the Federal Reserve, are markets being too complacent about the threat? Chris Beauchamp from IG believes that the traders are underpricing the risk to the central bank's independence https://t.co/9aLfq1oe7P
Stocks Are Shrugging Off Trump’s Fed Gambit. This Corner of the Market Isn’t. https://t.co/2u789rPspy