Fed Chair Race Heats Up, with 'Wall Street Waterfall' Emerging as Central Theme
BlockBeats News, November 14th: The main contender for the chairmanship of the Federal Reserve under US President Trump is converging around a policy that seems contradictory to Trump's style. While Trump desires low interest rates, the Federal Reserve chair candidates he favors advocate limiting the central bank's core tool for achieving low rates—quantitative easing. This political paradox is becoming a sharp contradiction in the race for the next Federal Reserve chair.
Trump continues to loudly criticize current Federal Reserve Chair Powell, with his true intent being able to appoint a new central bank head next year who aligns more with his own ideology. However, in this succession race, much of the discussion is focused on an issue that seems to contradict Trump's advocacy: limiting the size of the Federal Reserve's financial asset holdings.
The current key issue is how the situation will evolve in the coming months as Chairman Powell's term expires in May next year. Voices advocating a more cautious approach to quantitative easing are gaining greater influence, indicating that the Fed's approach to future economic downturns may undergo a profound shift.
But regardless of the eventual candidate, there is reason to believe that a Federal Reserve official appointed by Trump will still be forced to use all policy tools during an economic slowdown—especially in the current environment where the American people are deeply concerned about the cost of living. (Jin10)
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