Euphoria Incoming
The signal for the final blow-off top in equities
London | Brisbane 25 May 2026.
A new FED Chair creates a new era in markets as optimism becomes the norm, even if it’s short-lived. The old guard are vilified as a new broom sweeps away perceptions. It’s different this time.
Enter Kevin Warsh into a really tricky situation. Inflation surging, rates backing up, $39T national debt, credit crisis, CRE crisis. But the stock markets are running hard. New wealth is seemingly being created every day for those lucky shareholders. His immediate job is to not let those stock markets fall.
But, as Mr Warsh chairs the FOMC for the first time on 17 June, he’ll be looking at his predecessor, Comrade Powell, who has stayed on as Board Governor and can remain so until January 2028. This is quite unprecedented and will inevitably form a fracturing in a normally coherent committee.
President Trump will be seeking to deflect some of the responsibility for the financial mess of the USA, and he’ll be imbuing Mr Warsh with superhuman powers. He may have superhuman powers but he’ll need superhuman cooperation with Trump and Bessent to even stabilise the fiscal and monetary issues that have pushed the USA to the abyss. And if he fails, history will decide his legacy.
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Ian Reynolds: Trader & Investor | Former Bank Foreign Exchange Market Maker | Early investor in Bitcoin & Tech Founder. Helping investors understand the radical changes coming in macroeconomics and geopolitics.
Suberia Capital: Special situations investing for high net worth individuals.
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