Trump to Name New Fed Chair

Summary

President Trump will appoint a new Federal Reserve Chair in the first week of January, as Jerome Powell’s term ends in May. Trump seeks a successor who supports growth-friendly monetary policies, with candidates including Fed Governor Waller, Bowman, White House economic advisor Hassett, and former Fed Governor Walsh.Sina Finance+ 3

Impact Analysis

So, Trump is setting the stage for a major shift at the Fed by appointing a new Chair who aligns with his growth-focused agenda. This move is clearly aimed at steering monetary policy towards more aggressive rate cuts, potentially down to 1% or lower, which Trump has been vocal about. The timing is strategic, with Powell’s term ending in May, giving Trump ample time to influence the Fed’s direction before the 2026 elections. The market should brace for increased volatility as this could challenge the Fed’s independence and alter inflation expectations. Watch for bond market reactions—yields might drop if the market anticipates a dovish pivot. Equities could rally on the prospect of lower rates, but the risk of undermining the Fed’s credibility could weigh on longer-term sentiment. Keep an eye on how this plays out with inflation data and the broader economic outlook.Wallstreetcn+ 3