๐ฅ SHADOW CHAIR RISING | THE FED POWER SHIFT ๐บ๐ธ
Breaking signal from Trump
Donald Trump says he will name Jerome Powellโs successor in January โ
โณ months before Powellโs Chair term ends (May 2026).
The objective is clear: shape market expectations early.
๐ช The โShadow Chairโ strategy
An early nominee acts as a de facto policy signal, potentially pressuring the Fed toward faster rate cuts โ even before leadership officially changes.
โ๏ธ Whatโs unfolding behind the scenes
โข Legal pressure over Fed HQ renovation costs
โข A shortlist of 5 candidates
โข Front-runners: Kevin Hassett ๐บ๐ธ | Kevin Warsh ๐บ๐ธ
โข Loyalty test: support aggressive monetary easing
โณ 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.
๐ก Why this matters for markets
Lower rates = liquidity tailwind
But political pressure on the Fed = volatility catalyst
๐ Markets are watching closely
Expect reactions before confirmation, not after.
๐ Token to watch:
