Trump Considers Naming Fed Shadow Chair, Raising Fears Over Central Bank Independence and Market Stability

About Trump Considers Naming Fed Shadow Chair, Raising Fears Over Central Bank Independence and Market Stability

Trump is considering an unprecedented move to appoint a "shadow chair" of the Federal Reserve before Jerome Powell’s expected departure in 2026. This potential appointment aims to influence interest rate decisions, specifically pushing for steep cuts, which raises concerns about undermining the Fed’s independence and credibility. Experts warn that such a move could create market confusion, destabilize investor expectations, and threaten overall financial stability by challenging traditional monetary policy authority.