Nomura Global Macro Research Director: After Powell steps down, the Federal Reserve may welcome a new chairman whose position is more aligned with Trump's.

Nomura's global macro research director and joint director of global market research, Subo Wen, warned that after Powell steps down next year, the Federal Reserve may welcome a new chairman whose stance is more aligned with Trump. Although it is not the basic expectation for the Federal Reserve to lose independence, the risk has risen to the highest level in decades. If this situation really occurs, it will be very detrimental to the US economy and markets. If interest rates are too low, inflation risks will rise, foreign investors will lose confidence in US assets, long-term interest rates will rise, and the US dollar will fall.