Trump advisor proposes a shadow Fed chair, but Wall Street veteran Ed Yardeni thinks it’s a recipe for disaster

(Credit: Stefani Reynolds—Bloomberg/Getty Images)

Donald Trump’s campaign team is examining steps to sideline Federal Reserve Chair Jerome Powell, should the former president return to the White House.

Speaking with Barron’s, Trump economic advisor Scott Bessent suggested Congress approve a Fed chair designate more than a year before the central bank governor’s term expires in May 2026. This would effectively install a babysitter alongside the current Fed chair, and it could render Powell a lame duck for the remainder of his time in office.