Fed Governor Bowman: Fed Can Overlook Energy Shock if Credibility on Monetary Policy Maintained

Amid Resurgent Inflation and Political Pressure, How the Federal Reserve Is Preserving Its Independence

Interest Rate, Inflation, Independence, Transition Arrangement, and Eight-Year Term Summary

After Powell's speech, the market significantly increased its expectations for a September rate hike.

Federal Reserve Chairman Powell is facing a serious policy dilemma: under immense government debt and political pressure, the Fed has had to abandon its independence and anti-inflation stance. Instead, it has resorted to measures like quantitative easing to finance the government, creating a situation of "fiscal dominance" similar to the Volcker era of the 1970s. This foreshadows the Fed's need to reinitiate loose monetary policy, which could potentially drive up the prices of assets like Bitcoin.