Summary
- President Donald Trump could gain majority influence over the Federal Reserve Board if Chair Jerome Powell steps down.
- If Kevin Warsh is also appointed, Trump’s influence on the board could expand enough to give him a majority.
- Markets are focused on how changes in the Fed board’s composition could affect future interest-rate policy and the direction of monetary policy, with any shift in the board’s personnel structure seen as a key variable.
Forecast Trend Report by Period
President Donald Trump could gain majority influence over the Federal Reserve Board if Chair Jerome Powell steps down, raising the prospect of a shift in the central bank’s balance of power.
Walter Bloomberg reported on April 29 that Powell is currently the only member of the Fed’s Board of Governors to have been appointed by presidents of both parties.
Powell was first appointed to the board by former President Barack Obama. Trump later named him chair, and President Joe Biden reappointed him.
Trump has already appointed Michelle Bowman and Christopher Waller.
If Kevin Warsh is also appointed, Trump’s influence on the board would increase further and could give him a majority, according to the report.
Markets are watching how changes in the Fed board’s makeup could affect the future course of interest-rate and monetary policy. Whether the board’s personnel structure shifts is seen as a key variable.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
