Powell's successor has not been determined, but already faces skepticism. Will the nomination garnered through compliance be able to uphold independence?

U.S. President Donald Trump has acknowledged that the immense pressure he has put on the Federal Reserve to lower interest rates has actually made it more difficult to do so. His actions may also hinder the successor he will choose to be the next Fed Chair. The current Chair, Jerome Powell, will end his term in May next year. Trump has promised to pick "someone who wants to lower rates," potentially putting them at a disadvantage before they are even chosen as the next Chair. The public and investors may question whether the nominee will defend the Fed's independence or yield to Trump's demands. "People will wonder, what kind of commitments have been made or implied in order to secure the nomination," said Jon Faust, a researcher at the Johns Hopkins University Center for Financial Economics and former special adviser to Powell. "I think this is very bad for the next Chair. I think this is also very damaging to the Fed's reputation."