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At the center of the global financial system, a game concerning the fate of the US and even the world economy is quietly unfolding. This is not a trading war taking place on Wall Street, but a power struggle surrounding the position of the Fed chairman.
Former U.S. President Donald Trump recently stated that he might announce his choice for the next Fed chair in advance. This move has sparked widespread attention in the financial community, as the current chair, Jerome Powell, does not finish his term until May 2026. Trump's statement is seen as dissatisfaction with Powell's monetary policy and also as a potential challenge to the independence of the Fed.
Currently, the most mentioned potential successors include current Fed Governor Christopher Waller, former Governor Kevin Warsh, and White House economic advisor Kevin Hassett. The economic philosophies and policy inclinations of these three candidates vary, and if any one of them ultimately takes the helm at the Fed, it could significantly impact the future direction of monetary policy.
Trump's move is clearly not just aimed at pressuring Powell, but seems more like a strategic preemptive action. By locking in the candidate for Fed chair in advance, Trump is attempting to shape the tone of U.S. monetary policy for the coming years. The potential impact of this action should not be underestimated, as the Fed chair plays a crucial role in deciding interest rates, inflation targets, and economic growth policies.
The financial market reacted strongly to this news, with investors speculating on various possibilities and their impact on the market. Regardless of the final outcome, this contest over the position of the Fed chairman will undoubtedly become one of the important factors influencing the global economic landscape.
As the situation develops, we will continue to monitor this power transition that is significant enough to affect global financial stability. Amid the intertwining of economic policies and political struggles, the future direction of the Fed will influence the nerves of the global financial markets.