Analysis: The Federal Reserve will undergo significant "Trumpification" by 2026

Jinse Finance reported that Evercore ISI analysts Krishna Guha and Marco Casiraghi stated in a report that Trump's attempt to dismiss Federal Reserve Governor Cook could become a turning point, allowing the Fed to be gradually "reshaped" according to the president's wishes. They wrote: "We believe the current baseline scenario should be that the Fed will undergo a very significant 'Trumpification' by 2026." Although this does not necessarily mean there will be a dramatic shift in policy and practice, "we must take very seriously the possibility that this could lead to a break from past approaches and a fundamentally different reaction function." If Cook is forced to leave, the Fed's independence could be eroded, and this may "manifest as a steeper yield curve, increased inflation compensation, and a higher inflation risk premium."