Could Trump Take Control of the Federal Reserve? Wash Nominated to Move Forward, Powell Faces a Decision on Staying or Leaving

According to market information, after the U.S. Department of Justice concluded its investigation into Powell, Republican Senator Tillis withdrew his obstruction of the confirmation procedure for Wash, the nominee for Federal Reserve chair.

The Senate Banking Committee will hold a vote to advance Wash’s nomination at 10 p.m. Beijing time on Wednesday evening. If it is approved smoothly, it will pave the way for a full Senate confirmation vote during the week of May 11.

Meanwhile, a few hours after the nomination vote process for Wash on Wednesday evening, the Federal Reserve will release its April interest rate decision, which is also very likely to be Chairman Powell’s final press conference.

If Wash’s nomination as a Federal Reserve Board member is approved, the interim Fed Board member Milan, who is filling in temporarily, will be replaced—this will also be Milan’s last FOMC meeting, as he has long been pushing for rate cuts.

In addition, Powell’s term as Federal Reserve chair will end on May 15, but his term as a board member will continue until January 31, 2028, when it will be closely watched whether he will also relinquish his board seat at the same time.

If Powell chooses to leave his board seat, Trump may appoint another close associate to fill the vacancy; at that point, among the seven-member Federal Reserve Board, four seats would be held by board members from his own political party, providing voting support for him to take aggressive actions and dismantle the Fed’s traditional structure.

In short, whether Powell stays or leaves, as well as the progress of Wash’s nomination, will directly affect the pace and intensity of how Wash or Trump seeks to reshape the Fed’s operations, and will also have a significant impact on the Fed’s future policy decisions and the global financial market landscape.

#Federal Reserve Chair Candidate