TraderS | 缺德道人|Dec 12, 2025 12:37
Yesterday's FOMC meeting had just ended when it came to news that the Federal Reserve Board had approved the re-election of 11 local Fed chairs who intended to stay on. According to convention, this five-year vote should be completed by the end of February, and this sudden advance has political implications.
The fact is also true. This quick decision is to prevent Trump from interfering. The Board of the Federal Reserve, worried about the long night dream, unanimously passed the resolution. Even three of Trump's allies, Milan, Waller and Bowman, voted in favor. This move may deepen Trump's doubts about the loyalty of the shadow chairman Hassett, who has not been formally appointed.
There are reports indicating that this early vote is in response to Besant's requirement that the new chairman must reside in the jurisdiction for three years, which is actually to cut off the access of Wall Street and academic elites (usually the main source of high-level Federal Reserve officials) to local Federal Reserve. This is a threat to the existing elite circle of the Federal Reserve, so the internal unity of the buttocks decides to block it first.
Local Federal Reserve chairpersons are usually more hawkish than board members. With the completion of this contract renewal, the lineup of FOMC voting committee in 2026 will be very unfavorable to Trump.
Trump's desire to achieve "rapid and substantial interest rate reduction" through replacement is likely to fail. The hawkish voices within the Federal Reserve have been systematically preserved.
In this way, Trump may have to exert pressure in the future through the seats of the Council, the selection of the President and the reform of the system.
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