Trump threatens to sue Fed Chair Powell, plans to announce successor in January

Summary

US President Trump reiterated his criticism of Federal Reserve Chairman Jerome Powell, threatening to sue him for ‘gross incompetence’ related to the management of the Washington headquarters renovation. Trump plans to announce Powell’s successor in January, raising uncertainty about the future of US monetary policy and the Fed’s independence.Sina Finance+ 11Sina Finance

Impact Analysis

So, Trump is basically setting the stage for a significant shift in US monetary policy by threatening to sue Powell and announcing a successor in January. This move could destabilize the Fed’s leadership and create uncertainty in the markets. The timing is suspicious, given Powell’s term ends in May 2026, but Trump seems eager to expedite the change. The potential candidates like Hassett and Walsh suggest a more hawkish stance, which could impact interest rates and market sentiment. Bottom line—this is a classic Trump play to assert control and shake things up, but it could lead to volatility in the financial markets. Watch for reactions from major banks and shifts in bond yields as the market digests this news.Sina Finance+ 11Sina Finance