Trump advisor proposes a shadow Fed chair, but Wall Street veteran Ed Yardeni thinks it’s a recipe for disaster
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Scott Bessent, Trump economic advisor, suggests Congress approve a Fed chair-designate over a year before Jerome Powell's term ends in May 2026; this would create a shadow Fed chair, sidelining Powell; Bessent is on the shortlist for Treasury Secretary; Trump had a contentious relationship with Powell, often criticizing him publicly; Ed Yardeni calls the shadow chair idea 'terrible,' warning it would create market confusion; compares potential U.S. policy to Turkey under Erdogan, where central bank independence was undermined; Fed's credibility has suffered after misjudging inflation as transitory; Powell has recently been praised for reducing inflation from over 9% to closer to 2%.

#Trump #FederalReserve #JeromePowell #ScottBessent #EdYardeni #Economy #Inflation #MonetaryPolicy #Politics #TreasurySecretary

https://fortune.com/2024/10/10/donald-trump-federal-reserve-jerome-powell-central-bank-independence/