This message releases three layers of signals:
1. Market Stability: During Trump's term, he repeatedly criticized the Federal Reserve's policies. The expectation of Powell's continued tenure stabilizes the market's concerns about the continuity of monetary policy (the pace of interest rate hikes and cuts is more predictable), temporarily benefiting U.S. stocks, U.S. bonds, and expectations for dollar liquidity.
2. Political Considerations: Directly firing Powell would cross the 'central bank independence' red line, provoking backlash from public opinion; the White House's early statement is a way to balance 'pressuring the Federal Reserve' and 'maintaining political dignity.'
3. Ongoing Game: Even without firing him, Trump can still pressure the Federal Reserve through public opinion (such as criticizing high interest rates), and the tug-of-war between monetary policy and political demands will continue in the future.
In short, this is a signal of 'superficial stability and hidden games'; it temporarily soothes the market, while the long-term game has just begun.
