---
title: "The clearest and most straightforward Wash analysis on the internet"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/43144678.md"
description: "Are you also confused by Walsh's proposals to reduce the frequency of FOMC meetings, decrease Federal Reserve communication, and the so-called 'returning decision-making to the market'? Please read the following analysis. What exactly does Walsh want to change? For decades, the Federal Reserve has held eight FOMC meetings per year. After each meeting, there are not only policy statements and a press conference with the Chair, but also the dot plot and public remarks from various officials. This mechanism may seem cumbersome, but its purpose is direct: it lets the market know about internal disagreements within the Fed and whether interest rates might be raised or lowered next. Walsh believes that the market should not guess what the Fed..."
datetime: "2026-08-03T01:36:43.000Z"
locales:
  - [en](https://longbridge.com/en/topics/43144678.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/43144678.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/43144678.md)
author: "[纳斯达克小作手进行录](https://longbridge.com/en/profiles/16370765.md)"
---

# The clearest and most straightforward Wash analysis on the internet

Do you also find it confusing when Wall Street (Trump) proposes reducing the frequency of FOMC meetings, cutting back on Federal Reserve communication, and using rhetoric like "returning decision-making to the market"? Please read the following analysis.

## What exactly does Wall Street want to change?

For decades, the Federal Reserve has held eight FOMC meetings per year. After each meeting, there are not only policy statements and a press conference with the Chair, but also the dot plot and public remarks from various officials.

This mechanism may seem cumbersome, but its purpose is direct: it lets the market know about internal disagreements within the Fed and whether interest rates might be raised or cut next.

Wall Street believes that the market shouldn't guess what the Fed will do every day; instead, it should research inflation, employment, and productivity itself. Therefore, he proposed lowering the frequency of FOMC meetings, reducing officials' public speeches, weakening forward guidance, and reorganizing the Fed's internal policy research team.

"Returning decision-making to the market" sounds reasonable. But when these reforms are viewed together, the focus shifts from the market to power.

## In essence, it's about concentrating power in the Chair's hands

**Fewer meetings mean fewer opportunities for opposing views to clash publicly; fewer speeches by officials mean internal resistance is less likely to influence the market; reshuffling the research system gives the Chair a new theoretical basis to push policies.**

**On the surface, this is a reform of central bank communication. In reality, it's an adjustment of power. The goal is to reduce internal resistance, leaving more room for operation for the rate cuts that Trump wants to see.**

Reducing meetings means policies will undergo collective discussion and review less often, and committee members will have fewer opportunities to publicly express dissenting opinions.

Reducing officials' speeches means the market will increasingly struggle to hear opposition voices from within the Fed. Ultimately, only the Chair will remain capable of stabilizing market expectations.

Restructuring the research system means the Chair can bypass the existing team of economists and establish a research and argumentation framework that better aligns with his own policy direction.

Taken individually, all three actions can be given grand explanations. However, implemented simultaneously, the result is clear: power, which was previously dispersed among the Chair, governors, regional Fed presidents, and the internal research team at the Federal Reserve, is now concentrating in Wall Street's hands.

This is the key to understanding Wall Street's reforms.

The real challenge he faces is not how to explain interest rates, but how to reduce resistance during the rate-cutting process.

Trump needs low interest rates. Rate cuts can support the stock market and real estate, and also alleviate the interest burden on the U.S. government. But the Federal Reserve is not decided by the Chair alone. There are different stances within the FOMC; if Wall Street wants to cut rates, he must secure enough support.

Therefore, what he first needs to change is not the interest rate itself, but the method of determining interest rates.

## Wall Street saw through Wall Street's trick

Wall Street quickly understood: no matter how much Wall Street talks, the real meaning is that he doesn't want to raise interest rates and wants to create conditions for the next round of rate cuts.

Whether it's reducing meetings, reducing communication, or emphasizing productivity, the essence is downplaying inflationary pressure to find reasons for maintaining loose monetary policy. The market will naturally become more suspicious: will the Fed delay rate hikes in the future due to political pressure, or even cut rates early before inflation is fully resolved?

Bond traders didn't argue with Wall Street; they directly sold off long-term U.S. Treasuries.

This is why, despite the Fed sending signals of looser policy, the yield on 20-year U.S. Treasuries surged to 5.3%.

The Fed can determine short-term policy rates, but it cannot directly control the yields on 20-year or 30-year Treasury bonds. Long-term rates are priced by the market, reflecting not only future interest rate expectations but also inflation risk and judgments about the Fed's credibility.

If the market believes the Fed can control inflation, rate cut expectations usually drive long-term yields down.

But if the market thinks the Fed doesn't want to raise rates and only wants to cooperate with Trump's rate cuts, investors will worry about losing control of inflation in the future. To compensate for this risk, they will demand higher long-term yields.

Thus, an extremely awkward result emerged: Wall Street wanted to lower financing costs through loose policy, but Wall Street pushed financing costs higher by selling off long-term government bonds.

## 5.3% is a vote of no confidence

A 20-year Treasury yield of 5.3% does not just represent the market predicting the outcome of the next FOMC meeting. It is more like a vote of no confidence that Wall Street has cast against Wall Street.

The market is not worried about a single erroneous rate cut, but rather that the Fed's decision-making mechanism is changing. Meetings are fewer, communication is reduced, opposing views are harder to hear, and the Chair's personal policy space is growing larger.

This also explains why short-term rate cut expectations and rising long-term yields can occur simultaneously. Short-term rates may fall, but the inflation compensation and credibility premium demanded by the market rise faster, ultimately pushing long-term yields to high levels.

This is equally bad news for Trump. Mortgage rates for American households, corporate bond issuance costs, and the Treasury Department's long-term financing costs mainly reference long-term Treasury yields. Even if the Fed lowers short-term rates, as long as long-term yields continue to rise, real estate, corporate investment, and government finances will still face pressure.

Wall Street claims he wants to return decision-making to the market, and indeed, the market has given its own answer.

The 5.3% Treasury yield is Wall Street's response: You can reduce meetings, suppress internal voices, and reinterpret inflation, but you cannot force all investors to believe you.

$Micron Tech(MU.US) $SK Hynix(SKHY.US) $Microsoft(MSFT.US) $TENCENT(00700.HK)

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## Comments (4)

- **幻想日进斗金 · 2026-08-03T05:50:23.000Z**: Great write-up. Is it still tradable now?
  - **卖飞专业** (2026-08-03T05:50:44.000Z): You can buy, you can buy. Turn on the 🇭🇰 card and set the 🪜 to global mode, give it a try.
- **纳斯达克小作手进行录 · 2026-08-03T02:27:35.000Z**: The impact of the Federal Reserve's rate hikes and cuts on the stock market does not appear to be entirely linear at present. The current market consensus expects one rate hike this year, but given the current situation, there is a certain probability that Waller will delay both hiking and cutting r
- **纳斯达克小作手进行录 · 2026-08-03T01:42:17.000Z**: Recommended reading, the article's viewpoint comes from Chairman Zhang's perspective, which is the most logical analysis of Walsh I have seen.Walsh's various strange behaviorsRespect the market Reduce official statements Reduce the number of interest rate meetingsEstablish various working groupsBehi