Trump's Davos speech reveals the inside story of the Federal Reserve Chair selection: Why do candidates "change faces" after taking office?

【BlockBeats】 Interestingly, the recent focus has once again turned to the direction of Federal Reserve policies. Trump revealed his true thoughts on the candidates for the new Fed Chair during his speech in Davos, inadvertently exposing his inner anxiety—these candidates speak fluently during interviews, saying what decision-makers want to hear, but once they officially take office, they become someone else.

According to him: “I will announce the new Fed Chair candidate soon. Everyone I’ve interviewed is excellent. The problem is, once they take office, they will change, and indeed they will change. They say what I want to hear, then they take office, and their six-year term is set. After they start, suddenly they say, ‘Let’s raise interest rates a bit.’ I call them, ‘Sir, we don’t want to discuss this.’ It’s really surprising how much people change once they have a job. It’s a bit disloyal, unfortunately, but they have to do what they think is right.”

Turning the topic, he also explicitly criticized the current Fed Chair: “Our current Fed Chair is terrible, Jerome ‘Late’ Powell. He’s always a step behind, especially on interest rate issues, he’s painfully slow. But before the election, he’s quite suitable for the opposing camp.” He concluded with: “So we are about to welcome an excellent candidate, and I hope he can handle the job.”

This speech actually reflects an interesting phenomenon: the contradiction between decision-makers’ expectations of policy implementers and reality. The direction of interest rate policies directly influences market expectations, and the style and tendencies of the Fed Chair often determine the rhythm of market liquidity in the coming years. For those paying attention to macroeconomics and asset allocation, these signals should not be ignored.