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The Federal Reserve (FED) Chairman Powell seems to be in a very tricky situation, with signs indicating that he may choose to resign in the fourth quarter of this year.


Whenever important economic data is released, Powell becomes the target of constant criticism, mainly regarding his decision stance of not lowering interest rates for a long time. Recent criticism has been more direct, even calling him "the most unwise and harmful figure to the economy in the government."
From an economic data perspective, there are indeed reasonable justifications for a rate cut. Looking back to September 2019, the Federal Reserve (FED) had cut rates by 50 basis points in one go. The inflation levels and employment situation at that time were not much different from today, which makes the current policy of maintaining high interest rates increasingly difficult to understand.
Although trade policies have brought certain market uncertainties, the Federal Reserve's (FED) stance of keeping interest rates unchanged for six consecutive months has also raised questions. More importantly, other major economies have taken measures to cut interest rates, while the FED remains inactive.
Under this pressure, Powell seems to have only two options left: either decisively implement multiple rate cuts in the third quarter or choose to resign under excessive pressure.
For participants in the investment market, regardless of which scenario ultimately comes true, it is likely to bring positive effects, as any changes may ease the current economic tensions.
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