In mid-December, a sudden reversal occurred in the selection of the next Federal Reserve Chair. Former U.S. President Donald Trump publicly announced that former Federal Reserve Board member Kevin Waugh has become his top candidate, a decision that directly changed the previous situation—Kevin Hasset, who was widely regarded by the market as the preferred choice for the Chair of the National Economic Council, was pushed out of the top spot.

The drama lies in the fact that Waugh had not previously been the focus of Trump's attention. However, after a private meeting with Trump this Wednesday, the situation took a sharp turn. In an interview on Friday, Trump explicitly stated, "Yes, I think so," regarding Waugh, while he lightly dismissed Hasset by saying, "Both Kevins are quite good," and hinted that "there are other excellent candidates" in the running.

The ensuing controversy cannot be ignored. Massachusetts Senator Elizabeth Warren openly criticized this appointment possibility, fearing that Trump might choose a "puppet" who would obey his commands to lead the Federal Reserve, thereby achieving his personal policy goals. More concerning is that Trump reiterated a highly controversial view in this statement—that the Federal Reserve Chair should listen to the President when setting interest rate policies. This stance directly challenges the long-standing principle of the Fed's independence and the institutional foundation built over decades.

Now, all parties in the market are closely watching how this personnel change will influence future monetary policy directions. The boundaries of the Federal Reserve's power and its independence are likely to become key topics of discussion.