At midnight on Saturday Beijing time, as global markets enter a closed state, Trump suddenly drops a strategic financial bomb—announcing he will 'swiftly nominate' the next Federal Reserve chairman, directly launching a 'financial decapitation operation' against the current chairman Powell. This is not a typical personnel change but a long-planned coup of monetary policy that could completely rewrite the history of modern central banking.
[Five Major Nuclear-Level Shockwaves]
'Black Friday' raid exposes deadly signals.
Choosing to announce after the global markets close is comparable to the crisis maneuvering during the 2008 Lehman moment—internal assessments from the White House indicate that this decision will trigger a massive shock in capital markets. Trump's team has pre-arranged a 'weekend buffer period' to allow Wall Street to urgently formulate doomsday hedging plans over the next 48 hours.
The most severe constitutional crisis in the history of the Federal Reserve.
Announcing a successor eight months in advance is equivalent to initiating a 'political slow execution' against Powell. From now on, all market participants will ignore the current chairman's policy statements, and the Federal Reserve's decision-making mechanism will fall into a dilemma—this is the most brutal challenge to its independence since the Fed was established in 1913.
What the White House wants is not a central bank, but a money printing machine.
Trump just shouted for an epic easing demand of 'cut interest rates by 100 basis points' yesterday, and today he initiates the procedure for changing the Federal Reserve chairman. Sources reveal that potential nominees have signed a 'covert interest rate cut pact,' and Modern Monetary Theory (MMT) will officially take over the Federal Reserve.
The forward guidance system is facing collapse.
When Powell's interest rate path hedges against the signals from the 'shadow chairman,' the carefully constructed expectation management mechanism of the Federal Reserve will become a laughingstock. More terrifying is—if Powell refuses to resign, we will witness the spectacle of two Federal Reserves operating in parallel over the next nine months.
Ultimate suspense: The ultimate showdown between Wall Street and populism.
If a technocrat from within the Federal Reserve (like Waller) is nominated, the market may take a brief breath but will find it hard to reach the interest rate cut KPI; if a 'Trump loyalist' (like Kudlow) is parachuted in, global capital may initiate a massive escape from dollar assets. Notably, Trump's private plane secretly arrived in Palm Springs this week for a meeting with a mysterious financial figure.
[Doomsday Simulation: A Currency War with No Turning Back]
Compared to the 'fire Powell' exploratory threat in 2019, this time it's a real showdown. Once the nomination is announced, it will trigger a triple destructive chain reaction:
Week 1: The U.S. Treasury yield curve steepens violently, with the 2-10 year spread expanding to 100 basis points in a single day.
First month: The S&P 500 volatility index (VIX) breaks the 2008 record, with algorithmic trading causing a liquidity black hole.
First phase: Global central banks launch 'de-dollarization' emergency plans, with gold skyrocketing by 30% in a single month.
A financial winter has arrived, and this is not a drill! When the sun rises on Monday, all believers in the 'Fed Put' will collectively witness—the Federal Reserve, which once saved us from the 1987 stock market crash and the 2008 financial crisis, is slowly falling under the crosshairs of the White House.