A shadow Fed chief could lead to a ‘revolt’ at the FOMC against Powell’s successor, former vice chair warns

(Credit: Kamil Krzaczynski—AFP/Getty Images)

• Former Federal Reserve vice chair Alan Blinder said naming a so-called shadow Fed chief well before Jerome Powell’s term is up would sow confusion in financial markets and even set up a potential revolt against the eventual chair. Wall Street analysts agree it is a self-defeating idea that would sink the U.S. dollar and Treasury bonds.

Naming a so-called shadow chair for the Federal Reserve well before Jerome Powell is due to step down as the top central banker could blow up spectacularly.