Recent market news shows that in response to the controversies faced by Fed Chairman Powell, authoritative financial institutions have released a depth analysis report. The report suggests that if Powell can provide a reasonable explanation regarding the overspending issue, and the relevant projects pass regulatory review smoothly, the likelihood of him being forced to resign is low. It is worth noting that, before the official investigation results are announced, even Trump does not have the authority to directly remove Powell from his position.

However, analysts predict that Powell may face greater political and public opinion pressures in the future. Even if the clarifications are successful, Powell may continue to maintain a relatively conservative monetary policy stance in the short term, remaining cautious about the long-awaited interest rate cut decisions that the market has been anticipating. This stance may to some extent influence the expectations and reactions of the financial markets.

Currently, the global economic situation is complex and changeable, and the policy direction of the Fed is of great concern. How Powell finds a balance between political pressure and economic reality will directly affect the economic development of the United States and even the world. Market participants need to closely monitor the developments and adjust their investment strategies in a timely manner.