With former President Donald Trump winning the U.S. presidential election, key economic positions in the administration are also expected to be replaced. Attention is focused on whether Jerome Powell, chairman of the Federal Reserve (Fed) with a guaranteed term, can maintain his current position.
In an interview last June, President-elect Trump stated that he would not dismiss Powell "if he thinks Powell is doing the right thing," but he would not reappoint him when his term ends in 2026.
In a subsequent interview last month, Trump avoided giving a direct answer on whether he would remove Powell but said that the president should have a say in Fed policy.
During the election campaign, Trump clashed with Powell. In September, ahead of the election, Powell implemented a "big cut" (a 0.5 percentage point interest rate cut), which Trump strongly criticized as a "political act."
Scott Bessent, a hedge fund manager expected to be influential in the second Trump administration, mentioned the possibility of appointing a "shadow chairman" to create a lame-duck period for Powell before his term ends, instead of dismissing him outright.
The argument is that if the shadow chairman provides guidance or forecasts on policy direction and criticizes Fed policy under Powell, it could have a significant impact on the market.
Key cabinet members, including Treasury Secretary Janet Yellen, are likely to be replaced. Successors are already being considered.
Since President-elect Trump has pledged to be the "cryptocurrency president" with a pro-cryptocurrency platform, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), who led cryptocurrency regulation, is a strong candidate for replacement. Trump has declared that he would dismiss Gensler on his first day in office.
Lina Khan, chairwoman of the Federal Trade Commission (FTC), who led Big Tech regulation, is also expected to step down. The New York Times (NYT) reported that many expect Trump to replace the FTC chair, noting that traditionally, new presidents fill heads of government agencies like the FTC with members of their own political party.
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