Federal Reserve Candidate 'Change of Kings': Trump Backs Former Governor Walsh to Top the List, Amid 'Puppet Questions' and Challenges to Independence

On December 13 local time, the competition landscape for the next chair of the Federal Reserve suddenly changed — former U.S. President Trump publicly stated that former Federal Reserve Governor Kevin Walsh has unexpectedly become his top choice for the next chair of the Federal Reserve, directly replacing the previous leading candidate, National Economic Council Director Kevin Hassett, at the top of the candidate list.

This reversal is quite dramatic: Walsh was originally not a focal point on Trump's candidate list, but after a closed-door meeting with Trump on Wednesday, he quickly gained strong endorsement from the latter.

"Yes, I think he is," Trump explicitly listed Walsh as his first choice in an interview on Friday, while only lightly mentioning Hassett, who was generally well-regarded by the market, with "Both Kevins are great," and adding, "There are other excellent candidates," implying that the competition is still ongoing.

Controversy followed: Massachusetts Senator Elizabeth Warren publicly criticized, expressing concern that Trump would appoint a "puppet" to lead the Federal Reserve to push his personal policy agenda. More notably, Trump reiterated his controversial claim during this statement — believing that the Federal Reserve chair should consult the president on interest rate decisions, which undoubtedly directly questions the independence tradition that the Federal Reserve has long upheld.

Currently, the market is closely watching the follow-up impact of this candidate change, with the power boundaries of the Federal Reserve likely becoming the core focus of the next stage. #特朗普家族币 #美SEC推动加密创新监管 #美联储FOMC会议