Regarding the selection of the Federal Reserve Chair, why did Waugh suddenly reverse his stance on Hsu?
Hsu was previously a loyal supporter of Trump. Wall Street strongly opposed him, believing that with Trump's support in office, the Fed would lose its independence. Kevin Waugh has always considered himself an independent, advocating for the Fed's independence for years, and warning the government that influencing the central bank could lead to uncontrollable inflation.
The turning point came when Hsu suddenly shifted to emphasize that the Fed must remain completely independent. Trump has no influence on the FOMC, he only offers suggestions, and whether they are adopted depends on the data.
This is akin to a loyal supporter suddenly awakening. Although Trump knows it's just for show, it doesn't sit well with him psychologically. Plus, Trump is getting older, and Powell has already betrayed him once before.
Waugh previously maintained an independent image, supported by JPMorgan Chase's CEO, and was liked by Wall Street. Trump neither disliked nor hated him much, but recently, Waugh suddenly shifted to support Trump’s rate-cutting strategy, which was a pleasant surprise for Trump. Hence the statement that Waugh ranks first among potential Fed Chairs. Currently, Hsu has 51%, and Waugh has 40%.
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Regarding the selection of the Federal Reserve Chair, why did Waugh suddenly reverse his stance on Hsu?
Hsu was previously a loyal supporter of Trump.
Wall Street strongly opposed him,
believing that with Trump's support in office,
the Fed would lose its independence.
Kevin Waugh has always considered himself an independent,
advocating for the Fed's independence for years,
and warning the government that influencing the central bank could lead to uncontrollable inflation.
The turning point came when
Hsu suddenly shifted to emphasize that the Fed must remain completely independent.
Trump has no influence on the FOMC,
he only offers suggestions,
and whether they are adopted depends on the data.
This is akin to a loyal supporter suddenly awakening.
Although Trump knows it's just for show,
it doesn't sit well with him psychologically.
Plus, Trump is getting older,
and Powell has already betrayed him once before.
Waugh previously maintained an independent image,
supported by JPMorgan Chase's CEO,
and was liked by Wall Street.
Trump neither disliked nor hated him much,
but recently, Waugh suddenly shifted to support Trump’s rate-cutting strategy,
which was a pleasant surprise for Trump.
Hence the statement that Waugh ranks first among potential Fed Chairs.
Currently, Hsu has 51%, and Waugh has 40%.