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

Odaily News Luca Pesarini, an analyst at Ethenea, said in a report that the Federal Reserve's meeting this week will not be remembered for the interest rate path, but more as a test of the central bank's independence. "The real challenge is not the conflicting economic data, but the interference of politics in monetary policy communication," Pesarini said. Trump previously announced that he would soon appoint a successor to Federal Reserve Chairman Powell, nearly a year before Powell's term expires. This puts the concept of "shadow chair" in the spotlight. Pesarini said that if this news is announced, there is a possibility of conflicting monetary policy signals between the Fed officials and the designated successor, especially if the latter publicly pushes for rate cuts. (Jinshi)