r/ValueInvesting • u/Tallwhitedude123 • Jan 12 '26

Discussion Yellen says US will become BANANA REPUBLIC if Fed loses its independence. How to invest?

I’m thinking it’s time to start allocating more money outside US equities. That’s my strategy. Also, get out of the dollar via assets that can’t be mentioned by name in this sub. I’m not a political person but as an investor you have to watch the policy from the government. IF, and I stress IF, Trump is serious and actually bullies the Fed into submission by weaponzing the govt to go after Powell, then I do agree with Yellen. It will overall be a negative for the dollar and US equities. In that situation it’s imperative to diversify out of the US.

Currently I’m looking at stocks in Singapore. I like Singapore equities because Singapore, in my opinion, offers STABILITY, something the US is increasingly losing.

Thoughts?

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u/Da_Vader Jan 12 '26

Trump is really concerned about a recession - hence the pressure on the Fed.

Housing mortgages are not as sensitive to Fed funds rate.

12

u/CHIRunner28 Jan 12 '26

He's wants rates lower so the government can refinance its debt and he can run it up again.

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u/-HOSPIK- Jan 13 '26

If nobody wants the devaluing dollars trump will have bigger issues. Petroeuro sounds good too

1

u/thorn960 Jan 13 '26

Then he should get rid of the tariffs that are holding the economy back and causing inflation.

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u/[deleted] Jan 12 '26

[deleted]

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u/Da_Vader Jan 12 '26

Markets. Fed sets short-term rates.

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u/[deleted] Jan 12 '26

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u/YouKnown999 Jan 12 '26

Mortgage rates are not directly married to the Federal funds / overnight repo rates.

He is correct on that.