🔥 SHADOW CHAIR RISING | THE FED POWER SHIFT 🇺🇸
Breaking signal from Trump
Donald Trump says he will name Jerome Powell’s successor in January —
⏳ months before Powell’s Chair term ends (May 2026).
The objective is clear: shape market expectations early.
🪑 The “Shadow Chair” strategy
An early nominee acts as a de facto policy signal, potentially pressuring the Fed toward faster rate cuts — even before leadership officially changes.
⚖️ What’s unfolding behind the scenes
• Legal pressure over Fed HQ renovation costs
• A shortlist of 5 candidates
• Front-runners: Kevin Hassett 🇺🇸 | Kevin Warsh 🇺🇸
• Loyalty test: support aggressive monetary easing
⏳ The complication
Powell may lose the Chair role, but he remains a Fed Governor until 2028, limiting direct control and raising questions around Fed independence.
💡 Why this matters for markets
Lower rates = liquidity tailwind
But political pressure on the Fed = volatility catalyst
📉 Markets are watching closely
Expect reactions before confirmation, not after.
👀 Token to watch:
