【UBS: Politicalization of the Federal Reserve Will Increase U.S. Bond Risk Premium】According to Golden Finance, Paul Donovan, Chief Economist of UBS Global Wealth Management, stated that the increasing politicalization of the Federal Reserve will lead the U.S. bond market to price in a higher risk premium due to inflation uncertainty. He pointed out that this will raise the actual borrowing costs, increase the U.S. government's debt repayment expenditures, and imply a reduction in fiscal stimulus space and a decrease in corporate investment, which will damage—but not destroy—the status of the U.S. dollar as a reserve currency. Federal Reserve Chairman Jerome Powell opened the door for a rate cut in September during his speech at Jackson Hole last Friday, but did not present a 'proper medium-term policy framework' or make a strong defense of the Fed's independence. Meanwhile, U.S. President Trump has been continuously calling for the Federal Reserve to lower interest rates in recent months.