Friday , 22 November 2024
Home Forex Trump could create a ‘Shadow’ Fed Chair – undermine Powell
Forex

Trump could create a ‘Shadow’ Fed Chair – undermine Powell

Info comes via Barrons (may be gated).

Scott Bessent is described as “one of Donald Trump’s closest economic advisers”. He has proposed that Trump nominate and seek Senate confirmation of Powell’s replacement well over a year before Powell’s term ends in May 2026.

In effect, a ‘shadow’ Chiar. The approved nominee would need to wait for Powell’s term to end but the idea is that person’s guidance, predictions, and potential criticism of the Fed’s actions would weigh heavily on financial markets.

  • “You could do the earliest Fed nomination and create a shadow Fed chair,” said Bessent. “And based on the concept of forward guidance, no one is really going to care what Jerome Powell has to say anymore.”
  • “This is my idea, not the president’s,” Bessent said in an interview.
  • Ed Yardeni, a longtime Fed watcher and the president of Yardeni Research, called it a “terrible” idea, explaining that a shadow Fed chair would “create a lot of noise in the market.”

More at that link above if you can access it.

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Eurozone November flash services PMI 49.2 vs 51.6 expected

Prior 51.6Manufacturing PMI 45.2 vs 46.0 expectedPrior 46.0Composite PMI 48.1 vs 50.0...

Poor French and German PMI data keeps ECB 50 bps rate cut in play

Money market pricing is now seeing roughly 35% odds of a 50...

USDJPY Technical Analysis – We continue to range around key levels

Fundamental OverviewOverall, we’ve seen a rangebound price action in the US Dollar...

Germany November flash manufacturing PMI 43.2 vs 43.0 expected

Manufacturing PMI 43.2 vs 43.0 expected and 43.0 prior.Services PMI 49.4 vs...