Dow trades rangebound at $44500 midway through Q2 earnings season



While earnings season is expected to steal much of the market spotlight this week, the spat between President Trump, his administration, and the Federal Reserve looks set to continue.

Most recently, US Treasury Secretary Scott Bessent called for an investigation into ‘the entire Federal Reserve Institution,’ coining the phrase ‘mandate creep, ’ alleging the Federal Reserve is encroaching on political areas separate to monetary policy.

While this is perhaps the first time that the political independence of the Federal Reserve itself has been questioned recently, the same cannot be said for the current White House administration, with demands for lower rates piling up from both President Trump and his senators.

Headlines may suggest that Trump would like to replace Powell entirely, and while this may well be true, questions are to be asked whether Trump, or any incumbent president, has the power to do so. For now, this outcome appears unlikely.

Regarding US equity pricing, including the Dow, the current period of uncertainty around the Federal Reserve, both in policy and tenure, has slowed recent market momentum. As such, markets are closely watching for any clues on future monetary policy decisions ahead of the July 30th decision.



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