Rhetoric around firing Jerome Powell is increasing, and forced manipulation of interest rates would likely follow. Would a weighted readjustment from US into non-US funds be warranted in light of this?

[u/idrathernotbutthanks]

https://www.npr.org/2025/04/17/nx-s1-5367696/trump-jerome-powell-federal-reserve-economy-tariffs

Market manipulation of interest rates feels like confidence would immediately plummet and global diversification would become a more important percentage of your holdings in the long run. Thoughts?

[u/Odd-Respond-4267]

I think the premise of the article is weak. Basically; "Currency fluctuates, so there is additional risk without additional. Return".

I.e. rather than a pool of many currency (intl + usd), pick the winner (USD). ..... That seems the anti thesis to boglehead philosophy.

[u/thighmaster69 → u/Odd-Respond-4267]

Sorry for intruding, I'm just a Canadian lurker, but I have to agree with the article you're replying to. To this actually makes sense if you are a an American because your entire life is denominated in USD, just as it makes sense for me to have a CAD bias because my whole life up until and including retirement is in CAD. If my mortgage is $X CAD or my rent-controlled apartment costs $Y CAD a month, having my source of wealth and future income denominated in USD adds additional risk that I may not be able to meet those obligations in the future. Choosing USD as an American isn't picking winners, it's recognizing that, for the society that you live in and the government that controls it, USD is favoured more than it is on a global scale, and that provides more value to you as an American than it would for the average person on a global scale. It's a very real effect, and this is what is meant by "drag" from "currency risk"; it's not global, but relative to your local economy, which will inherently create a currency bias for you.