Trump to Engage in Extensive Campaign Activities

Summary

Trump announced he will conduct extensive campaign activities, framing the 2026 midterm elections around “pricing” and cost of living issues.Zhitong+ 2 His recent focus includes publicly pressuring the Federal Reserve for rate cuts, threatening to sue Chairman Powell, and indicating he has already chosen a successor to be announced soon, with Kevin Warsh being a potential candidate.Finet HK+ 3 He also plans to meet with oil and health insurance companies to address prices.Sina Finance His campaign rallies have resumed in states like Florida and Nevada, focusing on his economic agenda.

Impact Analysis

This isn’t just standard campaigning; it’s a full-frontal assault on the Fed to dictate the 2026 midterm narrative. He’s making it all about ‘pricing,’ blaming Powell, and promising lower oil prices.JIN10+ 2 The key signal is the relentless pressure on the Fed chair. With Powell’s term ending in May, Trump’s threats to sue him and float a dovish replacement like Kevin Warsh aren’t just noise—they’re a credible threat to the Fed’s independence.Finet HK+ 2 The market is facing a potential regime change in monetary policy, where decisions are driven by political cycles, not economic data. This injects a massive political variable into rate expectations. The consensus might be underpricing the risk of a highly politicized Fed pivot. The clearest trade here is on volatility. Longing bond vol seems prudent as this political battle over the Fed’s future will only intensify.