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]

Scott Bessent is seen as a safe pair of hands. It's really still a question mark of maybe the market reaction if he is picked. But Trump does say that he wants to name a successor very soon.Formal interviews have yet to take place and Jerome Powell term isn't yet over until May 2026. But the speculation here is, Tom, that if Trump does want to have some sort of influence on Fed policy, he would name a shadow Fed chair sooner rather than later. So the markets will watch what the shadow Fed chair says rather ...