Since taking office, Trump has repeatedly publicly criticized the current Federal Reserve Chairman Powell. Powell has consistently ignored him. However, Trump has recently stepped up his rhetoric, stating that he plans to announce the next Fed chairman candidate in the summer or fall, several months ahead of the traditional timeline.

Some say, what impact could this have? Even if a candidate is chosen, they won't take office for another year. If you think that way, you are simplifying the matter.

Trump is hastily 'appointing' a year in advance; in simple terms, he is pressuring Powell. Powell currently holds this position, but Trump can't wait any longer, as he believes Powell is obstructing interest rate cuts. Just think, if the new chairman candidate is decided now, how can Powell continue to work? Will the market still listen to him?

Wall Street has always regarded Powell as a 'stabilizing force.' One of the Fed's very important jobs is managing expectations. Now that there is a 'stabilizing force' that is set to take over in the future, the effectiveness of the original 'stabilizing force' might be greatly diminished. Trump's move is truly a cunning one, and it is indeed ruthless.

Moreover, this indicates that the independence of the Federal Reserve will also be affected. This is the real thunder; two months ago, when Trump openly questioned Powell, the market experienced similar concerns, with the dollar, U.S. bonds, and U.S. stocks all declining simultaneously.

Regardless of who Trump selects as a candidate, due to debt anxiety, the direction will certainly be towards interest rate cuts, and it may not just be small cuts, but significant ones. A 2% rate cut could save hundreds of billions of dollars in interest, and that’s savings every year. With more than three years left for Trump, how much could he save? Anyone who sees this would find it enticing; the underlying benefits are too great.

Deutsche Bank states that the market is pricing in an unusually loose policy under the new Fed chair's term, especially in the third quarter of 2026. Coincidentally, JPMorgan also has a similar prediction, forecasting that the Fed will cut rates seven times next year, bringing rates down to between 2.5% and 2.75%.

Needless to say, if Trump really goes through with this, market expectations may be immediately affected, and a shift may be imminent. One must admit that Trump's power is still too great; the entire capital market has to pay attention to what he says and does every day.

Under Trump's turmoil, it is highly likely that the four-year cycle routine will be broken.