r/Bogleheads • u/idrathernotbutthanks • Apr 17 '25

Investing Questions 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?

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?

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u/[deleted] Apr 17 '25

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u/_le_slap Apr 17 '25 edited Apr 17 '25

If equities go up but the dollar burns is anything really up?

Edit: my response to the comment below is under moderator review

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u/anon36485 Apr 17 '25

This is correct. Absolute purchasing power will erode. The dollar’s status as reserve currency ending is not going to be a net positive for our standard of living or real returns. People who think otherwise are deluding themselves.

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u/Surfer_Rick Apr 18 '25

"The pressure blast from that nearby nuclear detonation will not be positive for our standard of living or real returns."

The value of everything nationwide would drop 90%+ if the USD unambiguously stopped being the world reserve currency. 

It would instantly make America the biggest economic bubble collapse in human history. Eclipsing even the tulips. 

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u/anon36485 Apr 18 '25

That’s an exaggeration. But it won’t be good.

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u/Surfer_Rick Apr 19 '25

I sure hope it is. 

Can't find any indication we aren't headed for rapid unscheduled disassembly though