The impending departure of Jerome Powell as Federal Reserve Chair could grant President Trump substantial influence over global monetary policy, according to financial analyst Nigel Green of deVere Group.
Powell’s term expires in May 2026, but market expectations are already shifting focus toward Trump’s potential appointee.
Green suggests that Trump would likely select a Fed chair aligned with his economic priorities, potentially leading to more aggressive interest rate cuts than Powell’s cautious approach. The president has previously criticized the Fed’s pace of policy easing, indicating his preference for quicker action to support economic growth.
The transition process has already begun with Trump’s nomination of Stephen Miran to replace outgoing Governor Adriana Kugler. Should Powell step down early from his board position, Trump could directly fill that seat, accelerating the shift in Fed leadership.
Historical precedents in Japan and Britain demonstrate how leaders can engineer central bank transitions well before official term endings. Markets typically price in such changes early, meaning Powell’s influence could diminish rapidly once investors anticipate Trump’s preferred successor.
A Trump-influenced Fed could mean lower interest rates, a weaker dollar, and rising equity markets, along with renewed interest in cryptocurrency investments. However, Green warns this approach risks overheating the economy and reviving inflation pressures while potentially undermining the central bank’s independence.
The implications extend beyond U.S. borders, as Federal Reserve decisions affect borrowing costs worldwide for governments, corporations, and investors. Changes in U.S. monetary policy typically trigger ripple effects across global currencies, commodities, and capital flows.
Source: newsghana.com.gh
