Trump Adviser Scott Bessent Proposes 'Shadow Fed Chair' to Undermine Powell

Oct 9, 2024, 07:57 PM

Donald Trump's economic adviser, Scott Bessent, a hedge fund manager, has proposed a controversial plan to appoint a 'shadow Fed chair' if Trump wins the 2024 presidential election. The plan involves nominating a new Federal Reserve chair in 2025, a year before Jerome Powell's term ends in May 2026. This strategy aims to undermine Powell's authority by shifting focus to the new nominee, effectively rendering Powell a lame-duck chair. Bessent believes this move would leverage the concept of forward guidance to diminish Powell's influence on monetary policy decisions.