“Don’t fight the Fed” has been one of the most reliable mantras in modern markets. It has been proven over many periods, including the Greenspan put, during the global financial crisis, the long era of quantitative easing and even the post pandemic inflation shock.
It captured a simple truth: when the central bank commits to changing financial conditions, resistance is futile.
As 2026 begins, the executive branch wants in on this power. The Federal Reserve still sets the policy rate and still speaks the language of independence, but levers recently utilised by the US Treasury can
impact variables that matter most for growth, housing and asset prices.
Source: https://www.afr.com/markets/debt-markets/trump-is-attacking-the-fed-yet-markets-are-remarkably-calm-for-now-20260114-p5ntz5