Swiss bank: Trump's attack on the Federal Reserve has backfired.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said that global market pricing is no longer driven solely by economic data, as politics is playing an increasingly central role. She said that in the controversy related to the US Department of Justice, widespread support for Jerome Powell seems to be influencing the markets. Jamie Dimon, CEO of JPMorgan Chase, said this week that attacks on the Federal Reserve by the Trump administration could "backfire by pushing up borrowing costs and inflation." Ozkardeskaya said Dimon is right. She said that excessive rate cuts now could lead to future risks of higher inflation, keeping borrowing costs elevated for a longer period of time. She added that this dynamic has already been driving up long-term yields and steepening the US Treasury yield curve - a result that the White House may not be hoping to see.