Trump will most likely not remove Jerome Powell as the head of the Federal Reserve. If only because the US President formally does not have direct authority to fire him. According to US law, the head of the Federal Reserve can only be removed for “good cause,” and this term is not defined clearly enough for a simple dismissal for political reasons. There are no legal precedents in US history for the dismissal of the head of the Federal Reserve for political reasons alone. Trump could put political pressure on Powell and force him to resign. But the official, at least for now, has publicly made it clear that he will not leave.

#CNN, citing an unnamed senior adviser to Trump, writes that the president-elect has no such plans. And Powell will serve out the remainder of his term, which expires in May 2026. In short, he will survive the bull market 😁

Citation from editions:

"... The adviser cautioned that Trump could always change his mind, but his current view and that of Trump's economic team is that Powell should remain at the helm of the central bank as it pursues a policy of lowering interest rates."

Let us recall that in 2018, Trump appointed Powell to the post, and Biden reappointed him for a second four-year term. He has already "grown into" the chair and is understandable to the markets. Therefore, it is not at all a fact that keeping his post is a minus for the same crypto market. He is not Gary Gensler.

If the Fed were to change chairs, it would cause a surge in market volatility due to uncertainty. And a lot would depend on the background of the candidate for the job. According to #CNN, Gary Cohn, a Goldman Sachs alum who served as the first Trump administration's economic policy director, is in the running for the job. But former Trump officials said the fact that Cohn resigned in protest over Trump's steel tariffs makes it unlikely he will get the job.

Among the names mentioned by sources connected to Trump's transition are Kevin Warsh, who served on the bank's board of governors for five years and advised Trump during his first term, and Trump's former chief economist, Kevin Hassett.