Galaxy Securities Analyzes Potential Impact of Fed Leadership Change on U.S. Economy

Galaxy Securities suggests that a change in leadership at the Federal Reserve should not be automatically equated with a major market shift. According to Jin10, the key factor is how the new policies will affect the fundamental aspects of the U.S. economy, which are crucial for dollar pricing. Under the leadership of Waller, the Federal Reserve may undergo a significant transformation, moving from a post-financial crisis role of deep market intervention to a more traditional approach focused on rules and discipline. In the short term, the dollar is expected to strengthen, while in the long term, it may experience a slow bearish trend. U.S. Treasury yields are anticipated to rise in the short term, putting pressure on prices. If policies are credible, long-term inflation expectations could stabilize around 2%. Global stock markets may face short-term pressure, but U.S. stocks could see a recovery after initial setbacks. The core logic of a medium to long-term bull market for gold remains strong, with central banks likely to continue increasing gold purchases. Any flaws in the dollar's credibility could accelerate the development of a multipolar global reserve system.