🔥 The biggest suspense for the Federal Reserve this week: not interest rates, but whether Powell stays or leaves!

In the early hours of Thursday morning Eastern Time, the Fed will most likely announce that it will keep interest rates unchanged (3.5%–3.75%). But the market doesn’t really care about that—everyone is watching one person: Powell.
His chair term ends on May 15. Will he stay or go? Powell has said: the investigation isn’t over; as long as it isn’t finished, I won’t resign as a director. Kevin Wa… the “successor” nominated by Trump—has vowed to carry out a “system overhaul,” reduce the balance sheet, and change the framework… an earthquake inside the Fed is brewing.
Even more stimulating: the Iran war is pushing up energy prices, disrupting supply chains, inflation is sticking around, and growth is weakening. The Fed is forced to confront a “stagflation dilemma”—cut rates, or raise them again? Internal arguments are in full swing.
In the statement, will the word “additional” (hinting at continued rate cuts) be removed? If it’s removed, it’s a hawkish signal; if it stays, it’s a dovish wait-and-see. One word could trigger a surge in US Treasury bonds and the stock market.
Trump calls for rate cuts every day; if Wash takes office, he may cooperate; but if Powell remains as a director, he will directly clash with the “Trump camp.” The power game at the Fed is 100 times more intense than rate-decision surprises.
👉 One-sentence summary: Rates don’t move, but people’s minds do. Whether Powell stays or leaves will determine which way the stocks and bonds you hold will go. $ETH