The competition among Fed chair candidates is rife with undercurrents, with "draining Wall Street" becoming a core issue.

On November 14, the main competitor of the Fed chair under President Trump is forming a consensus around a policy that seems contrary to Trump's style. Trump desires low interest rates, but the Fed chair candidates he favors advocate for limiting the central bank's core tool for achieving low rates—quantitative easing. This political paradox is becoming a sharp contradiction in the race for the next Fed chair. Trump continues to loudly criticize the current Fed chair Powell, with the real intention of appointing a new central bank president next year who aligns more closely with his own ideology. However, in this succession race, much of the discussion has focused on a topic that seems to run counter to Trump's advocacy: limiting the holdings of financial assets by the Fed. The current core issue is how the situation will evolve in the coming months as Chair Powell's term ends in May next year. Voices advocating a more cautious approach to quantitative easing are gaining greater influence, suggesting that the Fed's response to future economic downturns may undergo profound changes. But regardless of who the final candidate is, there is reason to believe that the Fed officials appointed by Trump will still be forced to use all policy tools in times of economic slowdown—especially as the American public is currently concerned about the cost of living. (Jin10)