Powell’s 90% Power Loss Looms, Trump Eyes ‘Phantom Fed Chair’ Takeover

The Federal Reserve’s influence over financial markets could soon face an unprecedented challenge — not from inflation or economic data, but from political strategy.

Recent analysis shared by The Kobeissi Letter suggests Donald Trump may undermine Jerome's authority long before his term ends in 2026.

This trump phantom fed chair move could trigger a Powell 90% power loss in guiding interest rate expectations, reshaping how traders interpret central bank messaging.

How Trump’s Phantom Fed Chair Could Reshape U.S. Monetary Policy

The central bank’s authority rests not only on adjusting rates or managing its balance sheet but also on its power to send clear forward guidance.

If Trump announces his next Federal Reserve chief months ahead of Jerome's official exit, markets could begin reacting to that successor’s comments instead of the current chair’s.

This “phantom” successor effect would shift decision-making influence toward the incoming figure, making Powell’s speeches far less impactful.

Coach Miranda Miner, a crypto market strategist, points out that “policy is not just about decisions — it’s about perception, and perception can reprice markets faster than any rate change.”

Why Powell’s Guidance Matters More Than Rate Cuts

Historically, the Fed’s credibility in telegraphing policy moves often moves markets before any actual rate adjustment. Investors price in changes based on trust in the messenger. Once that trust migrates to someone else, the old signals lose potency.

As a crypto analyst, I see this as a potential volatility trigger, especially for Bitcoin and Ethereum, since macro policy expectations heavily influence their trading flows.

When Traders Stop Listening: The Powell-to-Phantom Shift

The danger for Federal reserve chair lies in the gradual erosion of his voice in policy debates. The moment traders begin aligning positions with Trump “phantom chair’s” statements, the current leader’s relevance in setting market tone diminishes.

This isn’t just theoretical — political figures have successfully shifted monetary policy expectations in past cycles by pre-emptively signaling leadership changes.

Such a dynamic could be amplified by a high-stakes 2025 environment, where rate cuts are being debated heavily. If the Trump phantom fed chair narrative grows , the Powell 90% power loss scenario could become self-fulfilling.

The September Fed Meeting : A Test for Powell’s Remaining Authority

David Malpass , former World Bank President, has warned the Fed is already behind the curve, urging a decisive 0.5% cut — contrasting the Bank of England’s three reductions this year. If the Fed moves just 0.25% in September, as many expect, it risks deepening the perception that Powell’s influence is waning.

Markets will be watching not just the rate decision but also the reaction. If traders show more interest in the opinions of Trump’s potential nominee than Powell’s press conference, it will signal a profound power shift inside the world’s most influential central bank.