The Federal Reserve is under the microscope, and President Donald Trump isn’t shy about shaking things up. While Fed Chair Jerome Powell’s job is safe — for now — the rest of the board may not be so lucky. Here’s why Wall Street is holding its breath.

The Players: Who’s on the Chopping Block?

Trump’s first target? Michael Barr, Biden’s pick as vice chairman for supervision. Barr’s oversight of bank regulation might not shield him from Trump’s potential legal maneuvering. Word is, Barr has already lawyered up, preparing for a stormy fight.

Then there’s Adriana Kugler, whose term ends in January 2026. Rumors about her reputation make her an easy target. Other Biden appointees, Philip Jefferson and Lisa Cook, also face uncertain futures.

On the other hand, Trump’s loyalists — Christopher Waller and Michelle Bowman — are safe. Their tenure aligns with Trump’s agenda, so they’ll likely stay in power.

Trump’s Legal Gambit

By law, Fed board members can only be removed “for cause.” But what counts as “cause”? Misconduct? Policy clashes? Trump might push these boundaries in court. Legal scholars believe Powell’s role is rock solid, but with a Supreme Court leaning conservative, nothing’s guaranteed.

Another wild card? Demotion. Trump could leave Powell on the board but strip him of his chairmanship — an unprecedented move that could spark chaos.

Congressional Chess

Trump’s ultimate weapon could be the Republican-controlled Congress. By amending the Federal Reserve Act, Trump could undermine the Fed’s independence, turning the central bank into a policy puppet.

Sen. Mike Lee’s recent post, “The Executive Branch must be under the direction of the president,” signals a growing push to clip the Fed’s wings.

Why It Matters: The Global Fallout

The Federal Reserve isn’t just a U.S. institution; it’s the backbone of the global financial system. Any move to undermine its autonomy could send shockwaves through markets.

We’ve seen hints of this already. Powell’s anti-Bitcoin stance recently wiped 8% off crypto markets in hours. Imagine the volatility if the Fed becomes a political chess piece.

Final Word: A Market Meltdown Ahead?

Trump’s plans could reshape the Fed — and not necessarily for the better. Wall Street is bracing for impact, and traders everywhere should prepare for turbulence.

What’s your move in a market where nothing is safe?

Stay sharp. Stay vigilant. The storm is brewing. #TradingByCFPro #BTCNextMove #USJoblessClaimsFall #trump