Part 8/12:
An upcoming policy shift adds another layer of complexity. Jerome Powell’s current term as Chair of the Federal Reserve expires in May 2026. The next appointment of the Fed Chair could tilt policy toward more dovish, growth-supportive measures, especially with President Trump potentially appointing a more inflation-tolerant chair. Such a move would likely result in a more aggressive return to liquidity pumping, with lower interest rates and increased risk appetite.
This potential change could accelerate the meltup, further inflating asset prices unless carefully managed.