Potential Market Shifts Loom Amid Federal Reserve Leadership Speculation
According to a report by Odaily, Stephen Brown, Deputy Chief Economist for North America at Capital Economics, warns of significant market volatility if former President Donald Trump acts on his suggestion to remove Federal Reserve Chair Jerome Powell. Brown predicts that such a move could trigger a decline in the U.S. dollar, stock market pullbacks, and falling short-term bond yields, while long-term yields might spike sharply.
Although Trump has recently downplayed the idea, calling Powell’s dismissal “highly unlikely,” speculation continues, especially with the possibility of a new Fed chair being named before Powell's term ends in May 2026.
Brown also expressed skepticism about Trump’s aggressive rate-cut proposal, stating that a 300 basis point reduction is unlikely, even under new leadership.
This scenario underscores how political shifts at the highest economic level could reshape financial markets long before any official term expire$BTC
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