Federal Reserve’s Bond Holdings Policy Creates Tension Between Wall Street and White House

Financial analyst Jim Bianco reveals a growing conflict between the Federal Reserve’s current stance on bond holdings and the expectations of both Wall Street and the Trump administration. The Fed has chosen not to expedite regulatory changes that would encourage banks to increase their government bond holdings, diverging from the desires of financial markets and President Trump’s administration. This divergence could lead to significant impact on the role of Chair Jerome Powell: he may face direct dismissal by President Trump or be effectively sidelined in his position.