The main power of the Fed is not only in the rate and the balance sheet, but also in the ability to guide the markets with words.
If Trump announces who will become the new head of the Fed, Powell's statements will have almost zero influence - the markets will start listening to the 'shadow head of the Fed.'
Although Powell's term expires in May 2026, he may lose real power over rates soon.
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Everyone is already tired of Powell. Lowering the rate and stimulating the economy is something that needs to be done, as it is built into this economic system. Otherwise, the global economy cannot function.
This model was created over a hundred years ago, and it has not been modernized in any way since then; inflation has always been rising. So, the devaluation of fiat currencies is a path to a new financial order in the future. And as long as the system works, it will be stimulated until it bursts. Then a new financial order will emerge in the world.
When this will happen, I don't know, but we still have some leeway; I think it will last for another 20 years. However, as technology develops, it may be less time. God willing, it will be enough for our lifetime. We will probably earn enough for retirement.
