🔥Significant Signal! Is the US Treasury Secretary Trying to 'Usurp Power' from the Federal Reserve? A Historic Game is Approaching

US Treasury Secretary Yellen is conspiring a reform that shakes the foundation of the Federal Reserve—drawing on the model of the Bank of England to strengthen the Treasury's oversight of the Federal Reserve.

Don't underestimate this statement; it hides two key signals behind it:

1. The era of the Federal Reserve's 'absolute independence' may be coming to an end

Yellen openly praises the reform in the UK in 1997: nominally, the central bank maintains independence in monetary policy, but the government holds greater discourse power in the regulatory framework. Translated, this means—you control the interest rates, but how you control them and how broad the control is, the Treasury should have a say.

2. Quantitative easing is labeled as the 'culprit of inflation'

Yellen wrote a 6000-word article last year, pointing out that the Fed's QE is a 'functional monetary policy experiment' and is the main culprit of high inflation after the pandemic. In her eyes, the 'prudent' response during the UK’s bond market crisis in 2022 is a textbook-level approach.

If this game materializes, the outcome may be: the Federal Reserve's efforts to combat inflation will be bound tighter by the Treasury's 'regulatory compliance'.

A core question is placed on the table: when 'independence' collides with 'accountability', who should the central bank's final trump card serve?

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