Trump Mulls Early Fed Chair Nomination, Markets React

President Donald Trump is considering announcing a successor to Federal Reserve Chair Jerome Powell as early as this summer, well ahead of Powell's term ending in May 2026, with the goal of influencing monetary policy sooner. Trump's dissatisfaction with Powell's cautious approach to interest-rate cuts, which he views as an impediment to economic growth, is driving the move. Potential candidates now include former Fed governor Kevin Warsh, National Economic Council director Kevin Hassett, Treasury Secretary Scott Bessent, and current Fed governor Christopher Waller. The prospect of an early nomination has already weakened the U.S. dollar and lowered Treasury yields, as investors worry about the Federal Reserve's independence and the emergence of a 'shadow chair' influencing policy before formally taking office. The White House has underscored its desire for monetary policy to align with a growth-oriented economic agenda. Markets and analysts are closely watching for further developments and upcoming U.S. economic data that may be affected by this uncertainty.