Trump’s Fed Shakeup: How Will It Rock the Stock Market in 2025?
Brace for impact—Trump's Fed overhaul could send shockwaves through Wall Street.
Market tremors ahead? The former president's rumored moves to reshape monetary policy have traders scrambling.
Rate-cut hopes vs. inflation fears: The coming clash could redefine market dynamics.
Wall Street's worst-kept secret: Everyone's betting on volatility, but no one agrees which direction it'll break.
One thing's certain—when politics meets monetary policy, someone's portfolio always gets burned.
Lower Rates Could Fuel Tech and Growth Rally
Zervos compared this scenario to the Greenspan-era policies of the 1990s, where bold rate cuts supported markets.
“The risks Greenspan took eventually paid off,” he said. “A new Fed chair may follow the same playbook.”
Such a MOVE could especially benefit technology stocks and growth sectors, both of which are highly sensitive to rate changes.
Markets Begin Looking Beyond Powell
Zervos also observed that investor interest in Powell’s speeches is fading. Despite the Fed chair’s recent signal of a potential rate hike, markets showed little reaction.
“The focus has clearly shifted to what Trump might do,” Zervos added.
He said Powell may be gradually losing influence, suggesting that Trump could be quietly sidelining the Fed chair. However, Zervos acknowledged that markets are not yet pricing in any specific successor and view potential appointees as unknowns for now.
While uncertainty remains over who will lead the Fed next, Zervos emphasized that the broader expectation of easier policy under Trump could already be creating a more favorable climate for equities.
