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Trump accelerates his move in the Federal Reserve: Republicans agree on rule change

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Power play in the U.S. Senate: Republicans are negotiating to change the confirmation rules to expedite Trump's nominees to the Federal Reserve Board of Governors.

The important thing:

  • Debate could take place as early as next month's meeting.
  • This means that Trump's candidates could reach the Federal Reserve Board of Governors without the usual filibuster process.
  • Faster = Trump will have control over monetary policy much sooner than expected

Why it matters for the market: The Fed controls interest rates. If Trump places his people in without obstacles, the next cycle of monetary policy could be more “friendly” to risky assets (crypto, tech, stocks). Bonds and the strong dollar could face pressure.

Key fact: This is an important political accelerator. Markets are on the lookout for any signals about who will control the direction of the Federal Reserve Board of Governors in the coming years.

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