WHO WILL REPLACE POWELL?

SUNDAY POLITICS: WHY WILL AMERICA GO BANKRUPT? - RAY DALIO

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- Why can't spending be cut?

- What paths can solve the problem?

- What to invest in to protect yourself?

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“The conductor of an orchestra doesn’t make a sound. He depends for his power on his ability to make others powerful.”

– Benjamin Zander

If the Fed is a symphony orchestra of the US economy, then Donald Trump, Scott Bessent, and Stephen Miran are the ones standing in the shadows behind the stage—not touching a single note, but deciding which piece of music will play, when the climax will be, and when it will subside.

In August 2025, when Stephen Miran was appointed to the Fed Governor seat replacing Adriana Kugler, the press only saw a personnel change. But for those who understand the power dynamics in Washington, this is the opening movement of an unprecedented arrangement: turning FOMC from an “independent monetary fortress” into political background music serving the White House strategy for the Trump 2.0 term.

The tacitly clear goal: keep interest rates low at all costs ahead of the 2026 midterms, while reshaping the entire yield curve to extend growth momentum—regardless of market reactions or the Fed's independence principle, respected across multiple US Presidents.

Over the past four decades, the Fed has been regarded as a bulwark against political storms. But now, that wall is shaking as Trump deploys his forces: Miran is just one pawn in a new power triangle, alongside Treasury Secretary Bessent and Trump himself, to control the FOMC majority vote and, further, prepare for Jerome Powell's successor.

In today's article, Viet Hustler will dive deep with you into analyzing the following aspects:

• FOMC – The “Politburo” of US Money: Power structure, voting mechanism, and why to cut rates, Trump must seize the majority seats.

• New pieces on the Fed chessboard: From Miran to Powell successor candidates—who will shape US monetary policy in 2026?

• Trump's Next Step: Scenario of the Fed becoming the White House's “Strategy Room”—and global consequences.

• Voting battlefield and consensus barriers: Why isn't a “loyal” Fed Chair enough for Trump to impose deep rate cuts?

• Market reaction and credibility risk: When the Fed is suspected of politicization, how will long-term yields and inflation expectations evolve?