Analysis: The Fed's interest rate decision may be overshadowed by the "Fed Shadow Chairman"

Odaily Planet News - An analyst from Ethenea, Luca Pesarini, said in a report that the Federal Reserve's meeting this week will not be remembered for its interest rate path, but more as a test of central bank independence. Pesarini stated: "The real challenge is not conflicting economic data, but political interference in monetary policy communication." Trump previously announced that he will soon appoint Powell's successor as Federal Reserve Chair, nearly a year before Powell's term expires. This has brought the concept of a "shadow chairman" into focus. Pesarini said that if this news is announced, there could be conflicting monetary policy signals between the official Federal Reserve and the designated successor, especially if the latter publicly advocates for rate cuts. (Jin Shi)