Potential Impact of Waller's Nomination on U.S. Monetary Policy

On February 2, Jin10 reported that a research paper by China International Capital Corporation (CICC) suggests that in the short term, the nomination of Christopher Waller may have limited impact on the path of interest rate cuts. However, it could lead to adjustments in expectations regarding U.S. dollar liquidity, potentially easing the pressure on dollar depreciation. Speculative assets driven by liquidity might face increased volatility. According to Jin10, in the medium term, Waller's proposals may encounter constraints from within the Federal Reserve, capital markets, and fiscal policies, making the success of his initiatives uncertain. Nonetheless, his willingness to adjust policies should not be underestimated. U.S. President Donald Trump's "America First" policy approach may gradually influence Federal Reserve practices in the coming years. Investors are advised to prepare for these potential changes.