Potential Fed Reshape Under Trump Could Boost Equity Markets, Analysts Suggest
Jefferies strategist David Zervos anticipates a Trump-influenced Federal Reserve may adopt a more dovish stance, potentially benefiting U.S. equities. With Chair Jerome Powell's term concluding in 2025, TRUMP could appoint up to four board members, shifting monetary policy toward growth-oriented strategies.
Lower interest rates under a reconstituted Fed WOULD likely mirror the Greenspan-era approach of the 1990s, particularly favoring rate-sensitive tech and growth stocks. Market attention appears to be shifting from Powell's guidance to potential policy changes under a future Trump administration.