{"id":195257,"date":"2025-06-18T20:11:13","date_gmt":"2025-06-18T20:11:13","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/195257\/"},"modified":"2025-06-18T20:11:13","modified_gmt":"2025-06-18T20:11:13","slug":"trump-makes-brash-economic-gamble-that-could-upend-wall-street-and-threaten-your-finances","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/195257\/","title":{"rendered":"Trump makes brash economic gamble that could upend Wall Street and threaten your finances"},"content":{"rendered":"

By ALICE WRIGHT FOR DAILYMAIL.COM<\/a> <\/p>\n

Published: 12:29 EDT, 18 June 2025 | Updated: 14:56 EDT, 18 June 2025 <\/p>\n

Trump has said he will soon name the next head of the Federal Reserve chief in a move that could rattle financial markets.\u00a0<\/p>\n

Such a move would be highly controversial since there is nearly a year left in current chairman Jerome Powell’s term.<\/p>\n

The independence of the Fed \u2014 which sets benchmark interest rates<\/a> that influence everything from mortgage costs to stock prices \u2014 is seen by Wall Street as vital for market stability.<\/p>\n

An early pick could create a ‘shadow’ chair alongside Powell, blurring the Fed’s message and direction.<\/p>\n

‘It’s coming out very soon,’ Trump said of his nomination earlier this month.\u00a0<\/p>\n

Markets respond not just to official Fed decisions, but also to hints about future moves \u2014 meaning mixed signals could cause turmoil.\u00a0<\/p>\n

‘You’re going to have two people trying to steer the ship: One that’s actually steering it, and one that’s the backseat driver,’ Ryan Sweet, chief US economist at Oxford Economics told Reuters.\u00a0<\/p>\n

Trump has long criticized Powell for not cutting interest rates<\/a> aggressively enough, even threatening to fire him during his presidency.\u00a0<\/p>\n

\"Traders <\/p>\n

Traders react to the Fed’s official decisions but also suggestions about their future plans\u00a0<\/p>\n

While the president has since reneged on that threat<\/a>, Wall Street has been unnerved by the President’s willingness to push the boundaries of the Fed’s independence from the White House.\u00a0<\/p>\n

A new Fed chair seen as under Trump’s influence would also concern Wall Street.\u00a0<\/p>\n

‘Whomever is appointed, the key thing to monitor is whether they are perceived as being a political appointee,’ Eric Winograd, chief U.S. economist at AllianceBernstein told Reuters.\u00a0<\/p>\n

‘And by that, I mean someone whose views change with the whims of the president.’\u00a0<\/p>\n

Callie Cox, chief market strategist at Ritholtz Wealth Management agreed that the next Fed chair will be crucial.<\/p>\n

‘Any Wall Street manager would tell you that Fed independence is the golden rule of markets,’ Cox told the publication.\u00a0<\/p>\n

‘To move away from that can introduce a whole host of issues.’\u00a0<\/p>\n

A wildcard choice for the next chair could also discombobulate the markets.<\/p>\n

\"Jerome <\/p>\n

Jerome Powell has almost a year left to serve as chair of the Federal Reserve\u00a0<\/p>\n

\u00a0<\/p>\n

\"Treasury \"Former <\/p>\n

Treasury Secretary Scott Bessent (left) and former nominee Judy Shelton (right) have been tipped as possible contenders\u00a0<\/p>\n

\"Former \"White <\/p>\n

Former governor of the Federal Reserve Kevin Warsh (left) and\u00a0White House economic adviser Kevin Hassett (right) are said to be in the running\u00a0<\/p>\n

The top candidates are currently\u00a0White House economic adviser Kevin Hassett; former Fed Governor Kevin Warsh; former Fed board nominee Judy Shelton and Treasury Secretary Scott Bessent,\u00a0according to Polymarket.\u00a0\u00a0<\/p>\n

The Fed’s ‘dual mandate’ is to keep inflation<\/a> low while maintaining a healthy labor market.\u00a0<\/p>\n

Economists have warned that Trump’s tariffs will raise prices<\/a>, something that will require interest rates to stay elevated.\u00a0<\/p>\n

However, a slowdown in the job market will pressure the central bank’s monetary policymaking committee to make a cut.\u00a0<\/p>\n

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\n Trump makes brash economic gamble that could upend Wall Street and threaten your finances<\/p>\n","protected":false},"excerpt":{"rendered":"By ALICE WRIGHT FOR DAILYMAIL.COM Published: 12:29 EDT, 18 June 2025 | Updated: 14:56 EDT, 18 June 2025…\n","protected":false},"author":2,"featured_media":195258,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,92,1700,16,15,5601],"class_list":{"0":"post-195257","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-dailymail","10":"tag-economy","11":"tag-uk","12":"tag-united-kingdom","13":"tag-yourmoney"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114706192116644642","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/195257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=195257"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/195257\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/195258"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=195257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=195257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=195257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}