Trump’s Potential Opportunity with the Federal Reserve
James Fishback, the CEO of investment firm Azoria, shared his thoughts on “Ingraham Angle” regarding President Donald Trump’s chance to appoint a new Federal Reserve chair. He believes this opportunity could arise sooner than many anticipate.
Currently, there’s speculation around Fed Chairman Jerome Powell, with Trump’s economic advisor Kevin Hassett and former Fed governor Kevin Wahsh being mentioned as likely successors. In light of the Department of Justice’s probe into Powell for possible perjury, Laura Ingraham questioned whether criticisms of the chairman actually affected his position.
“The unique opportunity for the president lies in appointing a new Fed chair, which could happen more swiftly than people think,” Fishback stated. “The market reacts based on expectations. Even if the new chair doesn’t assume office until next May, investors will respond differently compared to the situation with Jerome Powell.”
On Thursday, Florida Republican Rep. Anna Paulina Luna revealed plans to connect Powell with the DOJ regarding perjury claims tied to the Fed’s costly renovation of its headquarters. This announcement follows Powell’s earlier call for an investigation, further intensified after Federal Housing Financial Institutions Director Bill Prute urged Congress to act.
Earlier, Trump endorsed an article advocating for Powell’s immediate resignation. He criticized Powell’s previous rate cut, suggesting it was a desperate measure before an election that Trump ultimately won by a large margin.
Tensions between Trump and Powell have been escalating, particularly as the central bank has pointed to lower inflation as a reason for the president’s calls for action. Since Trump’s recent termination of mutual tariffs with several countries, Powell has voiced concerns about the unpredictability these changes may bring.
Fishback opined on the situation, suggesting that Trump should make the Fed chair appointment earlier than usual to counteract any narratives about missed timings, referring to Powell’s often-blamed nickname.
Before Rep. Luna’s disclosure, Powell requested a review of the renovation project, asking the Fed’s Inspector General, Michael Horowitz, to look into costs and related matters.
