The direction of the Fed next year. You already see record futures wagers in the market, with a lot of investors betting that the next Fed chair will be dovish. But given where we are right now, given the concerns about inflation, especially on the heels of all of this geopolitical tension, do you think that because the president wants lower rates, that the central bank can deliver them.Because I think the big question is, is the president going to appoint a shadow Fed chair. Right. There's a lot of talk th ...

Fed Chair Succession Speculation - Market views Powell's potential successor, possibly Bessen, with caution due to perceived loyalty to Trump and potential for earlier Fed rate cuts [1][2] - Trump's desire to influence Fed policy is driving speculation about a successor to Powell before May 2026 [2][3] Fed Independence Concerns - The market is questioning the definition of Fed independence, considering political affiliations of potential candidates [4] - Naming a successor early could undermine Powell's role and raise questions about his ability to complete his term until May 2026 [3][5] Potential Candidates - Besides Bessen, Kevin Warsh and Kevin Hassett are also being considered as potential candidates [2]

ISSUE 139 | May 15, 2025 | 11:35 AM EDT FED INDEPENDENCE: HOW CONCERNING? President Trump's public criticism of the Fed and, more importantly, his attempts to turn words into action by setting in motion a challenge to the landmark ruling that has prevented presidents from removing officials of independent agencies without cause have raised serious concerns about Fed independence. We talk to former Fed Vice Chair Richard Clarida, the Hoover Institution's John Cochrane, and GS' Jan Hatzius and Joseph Briggs, ...