The Federal Reserve is expected to cut interest rates this week, which could increase risks for stocks, bonds, and the dollar if perceived to be driven by political pressure. Wall Street investors are advised to diversify after the recent rally in anticipation of the rate cut. US Treasury yields have dropped to near 4% as signs of a weakening labor market point to more rate cuts. Some analysts warn that the record-setting stock rally may slow down once the Fed resumes cutting rates, despite market pricing of easing. President Trump continues to pressure the Fed for rate cuts.

Read more at Yahoo Finance: JPMorgan’s Kelly Warns Fed Cuts Risk Hurting Stocks and Bonds