US media report says its all over for Powell – ‘lame duck’, but he’ll still serve his term

A piece from Dow Jones / Market Watch (gated) seeks to bury Federal Reserve Chair Powell:

• Trump’s best pick to succeed Powell at the Fed is this ‘battle-tested’ market expert

It’s a litany of wrong:

• U.S. Federal Reserve Chair Jerome Powell is now a lame duck.

Wrong.

• Powell has lost control of the Federal Open Market Committee (FOMC), as seen in recent split votes on key interest-rate changes.

Wrong. It was two dissents. Four months apart. Talk about making a mountain out of a molehill.

• Powell was also an irritant during President Donald Trump’s first term, even though Trump appointed him.

Getting better ….

• Clearly, Trump will name a new Fed chair when Powell’s term expires on May 15, 2026.

And, finally, yes probably correct.

The piece goes on the say that Federal Reserve Bank of Minneapolis President Neel Kashkari “has the inside line to be the next Fed chair”, citing:

• by far the best communicator at the Fed
• Kashkari (said) saying, “We’re in a very good place to just sit here until we get a lot more information on the tariff front, on the immigration front, on the tax front.” … “I would expect the federal funds rate to be modestly lower at the end of this year.” …. These comments also are exactly what Trump wants to hear from Fed officials.

Will it be Kashkari?

I reckon its way too early to say so. I’d be asking instead, what about Judy Shelton?

• a former American economic advisor to Trump in his first term
• known for her advocacy for a return to the gold standard
• critic of the Federal Reserve

Gotta be a strong contender?

Judy Shelton was nominated to the Federal Reserve Board of Governors by Trump on January 28, 2020. However, her nomination faced significant opposition in the Senate and ultimately failed to secure confirmation.

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