JPMorgan Chase: "The Federal Reserve is not immune to political pressure" is a myth, and the US stock market may continue to rise due to the bet on interest rate cuts.

Morgan Stanley analyst Ilan Benhamou said: "The idea that the Federal Reserve is not affected by political pressure is a myth." At the same time, based on bets that interest rates will be cut soon, the U.S. stock market may continue to soar. As a member of Morgan Stanley's equity derivatives sales team, Benhamou said: "What we are seeing now has been happening behind the scenes for decades. The current situation is similar to the conflict between President Lyndon Johnson and Federal Reserve Chairman Bill Martin in 1965." With Powell's term as Federal Reserve Chairman coming to an end, investors will start paying attention to the policies of the next chairman. He advised clients to continue to go long on the S&P 500 Index and the volatility index, with the logic that investors will put more money into risky assets such as cryptocurrencies and artificial intelligence; meanwhile, due to uncertainties related to tariffs, inflation, and the Federal Reserve, market volatility will increase.