The power transition drama of the Fed is set to unfold ahead of schedule. Current Chairman Powell still has more than half a year left in his term (ending in May 2026), but Trump’s team is already urgently searching for a successor, with an official announcement possibly coming as soon as before Christmas.

According to multiple sources close to the White House, this selection process has entered its final stages. Treasury Secretary Becerra is personally overseeing the interview process, and the candidate list has been narrowed down from a long list to 5 individuals. Among these final five, Kevin Hassett, the Director of the White House National Economic Council, is the front-runner - he is regarded as the "top seed" by Trump's inner circle.

Other competitors are not to be underestimated: former Fed governor Kevin Walsh, and another current governor (whose name is still confidential). Who among these will emerge victorious in the end? The market is closely watching.

Why is this matter so important? The monetary policy stance of the Fed Chairman directly determines the liquidity of the US dollar. When the expectation of interest rate cuts changes, the stock market, bond market, and cryptocurrency all have to shake in response. Previously, the market was betting that the probability of an interest rate cut in December could reach 73%, but now it seems that who takes this position may be more crucial than whether or not to cut rates.

Trump's swift action this time clearly shows he wants to firmly grasp control of monetary policy. In the coming weeks, various analysts on Wall Street are expected to start making "policy inclination predictions" for these five candidates.