Oriental Wisdom: Damage to the independence of the Federal Reserve poses a major risk to the US dollar and US bonds.

Vincent Mortier, Chief Investment Officer of Eastspring Investments, stated in the release of its 2026 investment outlook that political pressures next year could influence the decisions of the Federal Reserve, posing significant risks to the US dollar and US treasuries. Eastspring Investments's main targets include fixed income, high-quality credit, and inflation-resistant assets. It is expected that the upward trend of emerging market stocks will continue, with a weaker US dollar and stronger growth in emerging market economies driving this. Eastspring Investments predicts that the yield on 10-year US treasuries will remain around 4%, and is more optimistic about Europe, Japan, and the UK in the same duration. It is anticipated that the European Central Bank will cut interest rates twice next year, while the market generally expects the bank to stay put.