The future of global monetary policy may be in President Trump’s hands as Jerome Powell’s term as Federal Reserve Chair nears its end, says financial analyst Nigel Green of deVere Group.
With Powell’s tenure set to conclude in May 2026, attention is already shifting towards who Trump may appoint as his replacement.
Green predicts that Trump would likely choose a Fed chair who aligns with his economic agenda, potentially leading to more aggressive interest rate cuts compared to Powell’s more cautious approach. Trump has previously voiced his disapproval of the Fed’s gradual policy adjustments, expressing a preference for swifter action to stimulate economic growth.
The succession process has already commenced with Trump nominating Stephen Miran to succeed outgoing Governor Adriana Kugler. If Powell decides to step down from his position on the board earlier than expected, Trump could swiftly fill that vacancy, hastening the change in Fed leadership.
Past instances in countries like Japan and Britain illustrate how leaders can orchestrate transitions within central banks well before official terms expire. Typically, markets anticipate such changes in advance, meaning Powell’s influence could diminish rapidly once investors anticipate Trump’s preferred candidate.
A Fed influenced by Trump’s administration could result in lower interest rates, a devalued dollar, and a bullish stock market, potentially sparking renewed interest in cryptocurrency investments. However, Green cautions that this approach may risk overheating the economy, reigniting inflationary pressures, and compromising the central bank’s independence.
The repercussions extend beyond U.S. borders, as Federal Reserve decisions impact borrowing costs globally for governments, businesses, and investors. Adjustments in U.S. monetary policy often trigger ripple effects across international currencies, commodities, and capital movements.
