U.S. stocks still closed higher in August, viewing concerns about Fed independence as a concern for tomorrow
Internet reports that in August, when economists were helpless about Trump's constant escalation of pressure on the Federal Reserve, the U.S. market sent a different message: Let the good times come. Artificial intelligence-related stocks suffered a sell-off on Friday ahead of the long weekend, but that was not enough to affect the stock market's monthly rally. The S & P 500 index rose 1.9% in August, while the Nasdaq gained 1.6%. The Dow rose 3.2%. Weak economic data and the modest impact of tariffs on prices so far have given investors more confidence that the Fed will cut interest rates at next month's meeting. At the same time, Trump's efforts to get Fed officials to support low interest rates have heightened hopes that further interest rates may be on the horizon. Economists warn that a Fed that is more susceptible to White House influence is more likely to cut interest rates excessively and ultimately drive up inflation. If August's performance suggests anything, it is that stocks view this possibility as a worry for tomorrow. (Jin Shi)
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