Trump said today he's looking to name a temporary Fed governor, then a permanent one, for the seat to be vacated by Kugler on Friday.
That said, here's what he could do to immediately neuter Powell, and accelerate the easing path.
He could appoint his current National Economic Council Director, Kevin Hassett (his loyal, aligned guy), to fill Kugler's seat.
And instead of waiting months for a Senate confirmation hearing, he could install him immediately, via a recess appointment.
Then, declare him the Chair-in-waiting.
That would instantly shift power away from Powell, both inside the Fed (where Hassett would have a vote and significant influence) and outside of the Fed, where markets would begin taking cues from the next Chair.
Then Trump could line up a nominee like Judy Shelton for the seat Hassett ultimately vacates to become the official Fed Chair.
A maneuver like this would quickly swing the market view on the rate outlook, and signal the Fed regime change is underway.
