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👑 Throwing a wrench in the works! Trump may “storm” in tonight during the FOMC to announce the new chair
Scenario simulation: Powell is very likely to say tonight (03:00): “Inflation hasn't been brought under control yet, we won't cut rates.” — This is bearish for the market. But at the same time, or a little earlier, Trump might tweet: “Happy to announce XXX as the next Federal Reserve Chair.”
Trump’s plan:
Grab the headlines: No one will care what Powell says; everyone will only discuss who the new chair is.
Hedge against bearishness: Powell’s slap (no rate cut), Trump will make up for it with a candy (a promise of aggressive rate cuts in the future).
Undermine the current: Once the successor is confirmed, Powell will become a “lame duck” for the remainder of his term, and the market will start pricing in the new chair’s style (most likely dovish).
Conclusion: Tonight, don’t just listen to Powell’s boilerplate; watching Trump’s tweets is the key! #BTC $BTC
Scenario simulation: Powell is very likely to say tonight (03:00): “Inflation hasn't been brought under control yet, we won't cut rates.” — This is bearish for the market. But at the same time, or a little earlier, Trump might tweet: “Happy to announce XXX as the next Federal Reserve Chair.”
Trump’s plan:
Grab the headlines: No one will care what Powell says; everyone will only discuss who the new chair is.
Hedge against bearishness: Powell’s slap (no rate cut), Trump will make up for it with a candy (a promise of aggressive rate cuts in the future).
Undermine the current: Once the successor is confirmed, Powell will become a “lame duck” for the remainder of his term, and the market will start pricing in the new chair’s style (most likely dovish).
Conclusion: Tonight, don’t just listen to Powell’s boilerplate; watching Trump’s tweets is the key! #BTC $BTC
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