Trump proposes appointing a clandestine Federal Reserve governor
By Hannes Vogel More Info Facebook Twitter WhatsApp Email Print Copy Link
In a move that could shake up the monetary policy landscape, former President Trump is allegedly formulating a plan to oust Federal Reserve Chairman Jerome Powell by appointing a "shadow Fed chief." This strategic move could potentially undermine Powell's authority, steering U.S. monetary policy from behind the scenes[1].
Trump's patience is running thin as he continues to press Powell to lower interest rates. His earlier suggestions to take on the role of the top currency guardian have been dismissed by Powell, leaving Trump disgruntled. In desperation, he may be considering installing a shadow Fed chief to exert control over monetary policy without resorting to firing Powell legally[1].
Accusations towards Powell mirror Trump's public calls for lower interest rates, referring to him as a "slowpoke" and a "total loser." Trump's dissatisfaction stems from his desire for growth and low-interest rates to boost the economy[1]. Ideally, Trump is seeking a central bank chief that can print money on command and provide jobs with a simple push of a button, much like the authoritarian governments in countries such as Venezuela or Turkey[1].
Trump's mention of firing Powell has been met with controversy due to the Fed's independent status and Powell's tenure not ending until 2026. The idea of dismissing Powell could lead to market uncertainty and potentially land in a legal quagmire. By installing a shadow Fed chief, Trump may be attempting to sideline Powell, eliminating the need to resort to more aggressive measures such as firing Powell outright[1].
According to the Wall Street Journal, former Fed Governor Kevin Warsh, Trump's economic advisor Kevin Hassett, and even Treasury Secretary Steven Mnuchin are being considered for the shadow Fed chief position[1]. Ancillary sources reveal that Trump's plans are far advanced, with him already contemplating possible candidates for the role[1].
Trump's intentions are clear – he is searching for a "faithful yes-man" to undermine Powell's authority and exert control over interest rates. This unconventional move could potentially destabilize U.S. financial markets and tarnish the Fed's reputation[1].
The appointment of a shadow Fed chief poses the risk of creating confusion in the markets, potentially leading to uncertainty and investor panic[1]. If Trump's plan comes to fruition, he could inadvertently destabilize the stock market instead of taming it through a compliant Fed chief. Moreover, undermining the Fed's independence might have long-term consequences, including damaging the Fed's credibility and the trust of international markets[1].
As Trump's term ended, the impact of a potential shadow Fed chief would be limited. However, the move could set a dangerous precedent, threatening the stability of the U.S. financial system in the future[1].
References: 1. (source: ntv.de)
Keywords: - Jerome Powell - Fed - Donald Trump - Central Banks - Shadow Fed President - Monetary Policy - Interest Rates - Market Uncertainty - Stability - Fraudulent Activities - Financial Instability - Unconventional Strategy - Illegal Activities (implied) - Power Struggle - Securities Fraud (implied)
The Commission has also been consulted on the draft budget concerning the potential appointment of a shadow Fed chief, given the possible implications for finance and economic policy-and-legislation. This strategy, if implemented, could create a stir in the general-news world, with significant impacts on business and politics. The emergence of a shadow Fed president could add another layer of complexity to the power struggle between Donald Trump and Jerome Powell over monetary policy and interest rates.
