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Date: 27-jun-2025 | By: Nuztrend Team
The financial world is on alert amid growing whispers that President Donald Trump could move to appoint a new Federal Reserve Chair well before Jerome Powell’s term ends in February 2026. While no official announcement has been made, insiders say the President has expressed dissatisfaction with current monetary policy and is considering a leadership change at the central bank.
This potential move, still in the rumor phase, could signal a fundamental shift in how the White House views its role in influencing interest rates and monetary strategy—raising eyebrows across financial and political circles alike.
The Chair of the Federal Reserve holds significant influence over U.S. and global financial stability. From interest rate policies to inflation control and crisis response, the Fed’s decisions ripple across markets and households. A premature leadership change, especially under politically charged conditions, could shake investor confidence and add uncertainty to already volatile markets.
Designed to function free from political pressures, the Federal Reserve’s independence has long been a pillar of U.S. economic governance. However, critics warn that any attempt by Trump to push out Powell early could damage that carefully guarded autonomy, raising fears that monetary decisions may become more politically driven than data-informed.
It’s worth noting this isn’t Trump’s first clash with Powell. During his previous term, Trump publicly lambasted the Fed for hiking interest rates and even hinted at dismissing Powell—a move economists widely considered reckless and unprecedented.
Though unofficial, several names have surfaced as possible replacements if Powell is removed early. These individuals share Trump’s outlook on low interest rates and economic stimulus:
All three bring experience, but their appointments could spark friction with Wall Street and Congress due to their ideological leanings.
U.S. markets reacted cautiously as news of a potential shake-up spread. Yields on U.S. Treasuries rose modestly, and the dollar weakened slightly. The S&P 500, which has been inching toward record highs, paused as investors reassessed the stability of Fed leadership in the coming months.
While some investors might welcome a looser monetary approach, especially if inflation shows signs of easing, many remain wary of the long-term consequences if political considerations begin to guide central banking decisions.
As Trump’s second term unfolds, the question of who will lead the Federal Reserve—and how independently they will operate—has become a central issue in the future of U.S. economic policy. With trust, inflation, and political pressure all in play, the world is watching the Fed like never before.
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Date: 26-Jun-2025
The U.S. dollar has dropped over 10% in just six months—its worst fall since 1973—as President Trump’s public feud with Fed Chair Jerome Powell triggers market turbulence and fears of deeper rate cuts.
Date: 27-Jun-2025
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