The politicization risk of the Fed may trigger uncertainty in inflation and rising borrowing costs.

According to ChainCatcher news and reports from Jin10, UBS stated that Fed Chairman Powell's speech at Jackson Hole signaled an increased probability of a rate cut in September, but lacked guidance on a mid-term policy framework. UBS pointed out that Powell did not make a stronger defense of the Fed's independence, and the Fed, which may be politicized by Trump in the future, could lead to a resurgence of inflation uncertainty, an increase in actual borrowing costs by 1 percentage point, and have a ripple effect on fiscal policy and household savings.

TRUMP1.19%
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