Tim Scott, Chairman of the US Senate Banking Committee, sent a clear message to the markets regarding the future of the Fed. Commenting on Kevin Warsh's confirmation process in the Senate, Scott stated, "Finally, we will have an independent Fed focused on interest rates rather than politics and climate change!" This statement is the highest-level confirmation of the Trump administration's strategy to narrow the Fed's agenda and focus solely on monetary stability.



✨ The Warsh Era and the New Fed Paradigm

🔹Kevin Warsh, Trump's nominee for Fed Chairman, passed the Senate Banking Committee with a 13-11 vote. Warsh's strict commitment to the 2% PCE inflation target and his aggressive stance on balance sheet reduction could put the market's accustomed "Fed Put" reflex on hold. Indeed, at the last FOMC meeting, interest rates were kept stable at 3.50%-3.75% with an 8-4 vote.

🔹The jump in inflation from 2.4% to 3.3% in March, and geopolitical risks in Iran pushing energy prices higher, show that Warsh's first test is far from easy. Tight dollar liquidity necessitates caution for risk assets.

✨ Markets will truly breathe when the Fed's compass is turned solely to price stability, not political winds.

⚠️Don't forget to mark stop-loss and manage risk properly.
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world_oneday
· 8m ago
LFG 🔥
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world_oneday
· 8m ago
To The Moon 🌕
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