"As of today, the Fed’s independence is guaranteed, but Trump has the ability to make his own appointments to the Fed board. If Fed independence does get threatened, you’re going to see a bond market reaction."
It's relatively quiet week where the highlights will be the latest global PMIs, the Aug 23 US-China tariff deadline, the minutes from the last FOMC and ECB meetings and, of course, Jackson Hole looms at the end of the week.
Bayer AG shares are down over 12% this morning - the biggest drop ever - to the lowest levels since October 2013, amid investor anxiety over the potential future legal costs associated with newly-acquired Monsanto's RoundUp weedkiller.
A renewed round of tariffs against China by president Trump dented bullish sentiment, but nothing appears able to stop the S&P which is just 14 points from making a new all time high, a goal it will likely achieve today.