Fed Independence Shock: A Test of Nerves & A Reminder of What Really Drives Markets

🌟🌟🌟The US markets woke up rattled when Jerome Powell confirmed that the US Department of Justice had issued a grand jury subpoena to the Federal Reserve.  This is a dramatic escalation in pressure from the Trump administration.  For a moment, it felt like the ground shifted beneath investors' feet.

A challenge to the independence of the Federal Reserve isn't just another headline.  It strikes at the heart of US monetary credibility.  The pre market dip reflected exactly that fear.

Investors suddenly had to price in a new variable : political risk inside monetary policy, the kind that muddles rate cut expectations and injects uncertainty into every macro model.

But then something important happened.

The US market recovered.

Not because the subpoena vanished.  Not because the political noise faded.  But because the markets did what they always do:  They recalibrated, reassessed, and refocused on fundamentals.

Corporate earnings remain resilient.  Liquidity conditions remain supportive.  Long term growth drivers did not disappear overnight.

This is the part that many forget:

Markets can panic in the morning and regain their composure by the afternoon.  That is not inconsistency.  That is just the nature of the markets.

So how do I respond to a day like this?

Not with fear.  Not with prediction.  But with discipline.

I continue to dollar cost average into my favourite index ETFs like $SPDR Portfolio S&P 500 ETF(SPYM)$ which gives me exposure to the top 500 of the best US companies.  This is because broad based equity exposure isn't built in political theatrics.  It is built on the long term earnings power of the world's strongest companies and that remains intact.

If volatility wants to share out weak hands, that is its job.

My job is to stay invested, stay rational and stay focused on the horizon.

Noise may fade but fundamentals always endure and compounding never sleeps.

@Tiger_comments  @TigerStars  @TigerClub  @CaptainTiger  @Tiger_SG  

# Fed Under Pressure: CPI Shock Or Rate-Cut Reset for Market?

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