This evening (European time), the minutes of the November meeting of the Fed's FOMC will be published. Normally, such a publication is an important event, because it provides a fairly deep insight into the thinking of FOMC members and helps to contextualize recent monetary policy decisions. This time, however, it is different. Everything the FOMC has decided so far may be less suitable than usual for predicting the effective parts of future US monetary policy. Because the cards in the game between the government and the central bank could be reshuffled when the next US administration takes office, Commerzbank’s Head of FX Research Ulrich Leuchtmann notes.

Trump appointments promise a whole load of fun

“Immediately after taking office in January, Trump should appoint someone to succeed the current Fed Chair Jay Powell when his term of office ends in early 2026. And this designated ‘shadow chairman’ is supposed to loudly proclaim on an ongoing basis until he takes office in 2026 that he will introduce a loose monetary policy as soon as he takes office. If everyone knows that the Fed will be pursuing a loose monetary policy from spring 2026, the effect will be very similar to a loose monetary policy today.”

“There could be a residual uncertainty. Will Congress actually confirm the “shadow chairman”? Will he be able to assert himself within the Fed from the outset or will there be resistance from the governors and regional Fed presidents? Or will the shadow chairman possibly mutate from a monetary dove to a hawk when he takes office? We have seen such sudden transformations in the past.”

“Two points remain that I take from Bessent's nomination: 1. Bessent is by no means the conventional candidate that some would like to see in the role. He is potentially disruptive. 2. Even without Congress formally amending the Federal Reserve Act, there is sufficient scope for the US government to damage the Fed's independence. The strength of the US dollar with which the currency market has acknowledged the election of Trump as the next US president is therefore at the very least bold.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD clings to strong gains near 1.1100 despite upbeat US data

EUR/USD clings to strong gains near 1.1100 despite upbeat US data

EUR/USD trades at its highest level since early October slightly above 1.1100 in the second half of the day on Thursday. Despite the upbeat Jobless Claims data from the US, the US Dollar (USD) stays under persistent selling pressure as the Trump administration's tariff announcements feed into stagflation fears.

EUR/USD News
GBP/USD extends rally, closes in on 1.3200

GBP/USD extends rally, closes in on 1.3200

GBP/USD preserves its bullish momentum and advances toward 1.3200 in the American session. The US Dollar (USD) struggles to find demand despite the better-than-expected Initial Jobless Claims data, as investors grow increasingly worried about an economic downturn on the new trade regime.

GBP/USD News
Gold slumps below $3,100 as correction from record-high picks up steam

Gold slumps below $3,100 as correction from record-high picks up steam

Gold's correction from the all-time peak set at $3,167 deepens after the drop below the $3,100 mark. The precious metal struggles to capitalize on risk-aversion after US President Donald Trump's tariff decisions as investors assess a potentially worsening demand outlook.

Gold News
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX

SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX

Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain. 

Read more
Trump’s “Liberation Day” tariffs on the way

Trump’s “Liberation Day” tariffs on the way

United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs. 

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025