The Fed’s policy may shift significantly after leadership change in 2026
The Federal Reserve’s last short-term Treasury buyback program occurred at the end of 2019, just before the COVID-19 pandemic triggered a major market crash and led to a broad quantitative easing rollout. This sequence highlights how monetary policy adjusts with some delay in response to crises.
Some analysts suggest that a fundamental shift in the Fed’s policy is unlikely until current Chair Jerome Powell steps down in May 2026 and is replaced by an appointee associated with former President Donald Trump’s political sphere.
Should this anticipated leadership change take place, markets could see new momentum to reshape monetary strategy, significantly impacting the U.S. and global economies.
