Former Federal Reserve Vice Chair Alan Blinder warned that appointing a shadow chair before Jerome Powell's term ends could create significant confusion in financial markets. President Trump plans to nominate a replacement soon, expressing intent to appoint someone who aligns with his desire for lower interest rates. This could lead to unsettling market conditions, as the current chair and the prospective one would likely convey differing economic perspectives, potentially undermining Powell's existing policies and creating turmoil in the financial landscape.
Naming a shadow Fed chair before Jerome Powell's term ends could lead to confusion in financial markets and even incite revolt against the eventual chair.
Trump stated he will only nominate someone willing to cut rates, creating potential for chaotic market responses that could undermine Powell's efforts.
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