BlackRock strategist: Trump risks challenging Fed's independence

U.S. Treasury investors should consider the possibility of a Trump presidency after Trump said he would seek to influence U.S. monetary policy if elected, said Wei Li, global chief investment strategist at BlackRock. “That risk exists when we consider what could happen.” Li added that fiscal issues will also affect demand for long-term Treasuries. Trump said Thursday that the president should have some say in setting interest rates. Trump's challenges to the Fed's independence, both during his presidency and more recently on the 2024 campaign trail, have broken with the long-standing norm that presidents don't influence the decisions of Fed policymakers, Li said, adding that “regardless of who's in the White House, all of this suggests that going forward we'll need to think much more carefully about the construction of our portfolios around U.S. public debt. ”