The Federal Reserve’s century-long independence has been completely rewritten today.


The inauguration of the new chair, Vaush, was held at the White House for the first time ever, skipping the usual practice of holding it at the Federal Reserve headquarters—this in itself is a painfully clear signal.

Trump’s remarks were even more straightforward: limiting forward guidance, monetary policy must follow the White House.
This means that in the future, interest rates and liquidity policies will no longer be independently determined by the Federal Reserve based on economic data, but will fully serve the White House’s political needs.

The market pricing logic has been completely upended; going forward, every policy change will carry a strong political undertone, and volatility will only be more intense than at any point in the past.
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