Trump may be looking to stack the Fed.
If Trump goes down this path it would be bearish for the US dollar and wildly bullish for precious metals and hard assets. The long end would hate it and there would be a big steepener.
Biden appointed:
- Jefferson
- Barr
- Cook
- Kugler
Kugler has already resigned and been replaced by Miran.
If Trump were to replace the other three and the chair, he would have enough votes to do whatever he wanted, presuming that Waller, Bowman and Miran continued to back his agenda. It would be the end of Fed independence.
I don’t think the market will take this too seriously but this is floating a major shakeup to monetary policy and it would be an atomic bomb.
Talk like this might lead Powell to stay on as a Governor when his term expires.
This article was written by Adam Button at investinglive.com.
