The Power Play Pivot — Fed Independence Tested Amid Political Pressure

Robeco’s September 2025 Monthly Market Monitor analyzes the Fed-Trump clash and its implications for global markets.

• Global equities extended gains in August, led by strong U.S. earnings, while European equities lagged on political uncertainty and fading fiscal optimism.

• Pressure on Fed independence could reshape asset performance: gold and small caps tend to outperform when rates are held artificially low, while long-dated Treasuries face headwinds.

• Political incentives for lower rates ahead of U.S. elections intensify the risk of fiscal dominance and inflationary pressures.

How should portfolios adapt if central bank autonomy continues to erode? Explore the full report for scenario-driven allocation insights.