How Trump Can Secretly Disarm Fed Chair Powell | WSJ

Federal Reserve & Monetary Policy - President Trump considered nominating a replacement for Federal Reserve Chair Jerome Powell earlier than the typical transition period [1] - The concept of a "Shadow Fed Chair" is introduced as a way to potentially undermine the current Fed Chair's authority [2] - Trump expressed dissatisfaction with Powell for not lowering interest rates as much as desired [6] - Trump suggested interest rates should be as low or lower than 1%, significantly below the current range of 425% to 450% [9] Potential Risks & Challenges - Creating a "Shadow Fed Chair" may not be effective and could confuse financial markets [9][10] - The "chair in waiting" could face challenges in expressing views that align with both the President and market expectations [10][11] - Disagreements about policy could undermine the credibility of the Fed [13][14] Nomination & Confirmation Process - The President nominates members to the Federal Reserve Board of Governors, who are then confirmed by the Senate [4] - The Senate plays a crucial role in deciding whether a nominee has the right temperament to lead the Fed [19] - The confirmation process could be difficult, given the President's desire for someone who will align with his wishes [20] Potential Candidates - Kevin Warsh, a former Fed Governor, was considered for Fed Chair in 2017 [15][16] - Kevin Hassett, former Director of Trump's National Economic Council, is another potential candidate [16] - Other potential candidates include Scott Bessent and Fed Governor Chris Waller [17]