Besant's one word of 'affirmation' can be seen as the Trump administration's precise public opinion decapitation of the Federal Reserve — the former hedge fund manager turned Treasury Secretary wrapped the 'power usurpation blade' in financial jargon, exploding the 'independence defense line' of the Federal Reserve with a single statement. Announcing the selection of the chairman in the fall is not a mere preview; it is clearly a signal grenade thrown to indicate the 'countdown to the end of the Powell era', attempting to directly undermine the Federal Reserve's policy autonomy through expectation management.
This power transition is fundamentally Trump’s attempt to tie the Federal Reserve to the 'debt war chariot.' Besant's assertion that the new chairman must 'focus on forward guidance and downplay old data' aligns perfectly with Trump's demand for 'a 100 basis point rate cut'; looking at the candidate list, with Malpass advocating a 'weak dollar' and Hasset supporting tariffs, not one of them doesn’t harbor the thought of 'smashing the inflation line for short-term growth' — it is clear that they want the Federal Reserve to become the 'debt absorber'.
Even more bizarre is Besant's 'dual identity game': both the 'manipulator' behind candidate selection and a potential 'candidate' himself. No matter how much the White House denies it, this contradiction turns the selection into a thoroughly political show — throwing smoke bombs around his candidacy, testing market reactions, and paving the way for others. Hedge fund giant Paul Tudor Jones bluntly revealed the truth: 'Besant is Trump's first choice; loyalty is the hard currency!'
Trump's ruthlessness lies in the 'gray area' of law and public opinion. Even if the Federal Reserve Act clearly states that Powell's term lasts until 2026, he still uses the 'shadow chairman' tactic to undermine him — Besant's proposed 'forward guidance' essentially means using the expectations of a successor to crush the authority of the current chairman. What's even more insidious is the 'boiling frog' approach: removing Lisa Cook and appointing confidants to the Federal Reserve Board to seize the majority power of the seven-member board is far more ruthless than directly dismissing Powell.
The global market has already exploded; this is fundamentally a warning alarm for the instability of dollar credit! Once monetary policy becomes a tool for debt relief, the yield curve inversion (2-year 3.7% vs 30-year 4.936%), and gold breaking through the critical threshold of $3,393 per ounce — every data point is screaming: the Federal Reserve is being politicized, and it is tearing apart the pricing logic of global assets! Capital is fleeing emerging markets, and the hedging costs for multinational corporations are soaring, all becoming 'sacrifices' in this power game.
In Besant's affirmation lies a 'time bomb': the selection of the Federal Reserve chairman has shifted from professional judgment to political bargaining, monetary policy has devolved from being data-driven to being swayed by public opinion, and the last 'stabilizing valve' of the global economy has completely vanished. History will eventually tally this account: sacrificing central bank independence for a fleeting drop in interest rates is fundamentally a bubble — the cost is far beyond anyone's imagination.
