Saxo Market Call Market complacency challenged by latest blitz of Trump administration moves
12 snips
Jan 12, 2026 Market tensions rise as the Trump administration targets Fed independence, stirring unease among investors. Merck's potential $32 billion acquisition of Revolution Medicines hints at strategic corporate moves. A wave of earnings reports approaches, with key tech players like TSMC set to reveal insights critical for AI hardware. Meanwhile, yen weakness and Japan's political landscape raise eyebrows, alongside concerns over complacency in market sentiment ahead of earnings season. Discussions on nuclear energy and solid-state batteries spark intriguing future possibilities.
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Fed Independence Under Political Pressure
- John Hardy argues the subpoena against Fed Chair Powell is an intimidation tactic by the Trump administration.
- He views it as part of a broader erosion of Fed independence amid fiscal dominance and industrial policy.
Political Moves Test Dollar And Risk Sentiment
- The market reacted risk-off to the Powell subpoena and saw some dollar selling.
- Hardy highlights this move as testing whether markets will brush off political interference or reprice dollar and risk assets.
Policy Shifts Raise Corporate Risk Premiums
- Hardy sees a pattern of policy shifting away from profit motives toward geopolitical and political aims.
- He warns this shift raises the risk premium on companies exposed to policy intervention.