Powell has become a pawn! Trump's list of confidants leaked, was this "interest rate cut coup" foreshadowed?
Trump wants to settle on the next Federal Reserve chairman early because he is unhappy with Powell.
1. Why is Trump in a hurry? Current Federal Reserve Chairman Powell is in charge of U.S. interest rates, but Trump feels Powell has been dragging his feet on the interest rate cut issue, which frustrates him. Although Powell has 11 months left in his term, Trump can't wait.
2. When does he plan to announce? According to insiders, Trump may announce a new candidate as early as September or October, or even finalize it during the summer.
3. Who are the candidates? Several named include:
Kevin Warsh
Hassett
Treasury Secretary Mnuchin
Former World Bank President Malpass, and a current board member of the Federal Reserve, Waller.
4. What is the impact of this? It's clear he wants to stir things up! The selection of the Federal Reserve chairman is a big bombshell. Announcing it this early is a blatant interference in the market. It will make everyone start guessing what the new appointee's stance will be and how interest rates will move next, and the financial market is sure to be turned upside down.
This is clearly Trump playing political tricks. He is unhappy that Powell is not cutting rates to stimulate the economy as he wishes, and he wants to intimidate the market and coerce the Federal Reserve into submission by announcing his confidant's ascension in advance. He doesn't care about the independence of the Federal Reserve, just thinking about giving the economy a shot in the arm before the election, regardless of whether this move is a major risk to market stability. Too reckless!
Daily share from Sheng Ge, the behind-the-scenes team only serves ambitious madmen, feeding you the 10x coin password directly into your mouth.