💼 White House Wants to Replace the Fed Chair? First, It Has to Get Through the FOMC

Recently, the market has been focused on one topic: Trump plans to nominate a new Federal Reserve Chair, and people are worried he’ll pressure the central bank to cut rates and inject liquidity. But Bank of America poured cold water on this idea—it's not just the Chair who calls the shots; it’s the collective will of the entire FOMC committee. Even if the new Chair wants to cut rates, if the hawks hold the majority on the committee, it still won’t go through.

Powell’s term as Chair ends in May 2026, but his tenure as a board member can last until 2028. Traditionally, outgoing Chairs don’t stay on as board members, but Powell has publicly stated he won’t resign, making it clear he intends to defend the central bank’s independence. White House pressure? The room for maneuver is actually very limited.

⚠️ What’s more worth watching is the changes in seats: Atlanta Fed’s Bostic is about to retire, and Governor Cook is facing a removal hearing. Trump does have the chance to put people in, but here’s the problem—right now, out of the 12 regional Fed presidents, about 8 don’t support rate cuts. Even if a new Chair takes office and wants to make sweeping policy changes, they’ll first have to convince this group.

💡 So here’s the suspense: Can the White House really take control of Fed policy direction, or will it hit an institutional brick wall? This political game and the battle over central bank independence are just starting to heat up. For the crypto market, Fed policy directly impacts liquidity expectations, and short-term volatility in major coins like ETH may intensify.