US stock futures rise on Thursday as investors reacted to Fed Chair replacement plans announced by President Trump. This key development increased hopes for early interest-rate cuts amid ongoing concerns about economic growth and inflation. Dow Jones Industrial Average futures climbed 0.3%, while S&P 500 futures gained 0.4%. The Nasdaq 100 futures rose 0.5%, helped by Nvidia’s ongoing record performance. The market showed optimism as Trump’s move signals a shift in monetary policy direction.
President Trump has expressed frustration with Jerome Powell’s cautious “wait and see” approach to interest rates. As a result, he plans to name a Fed Chair replacement as early as September or October. This decision could reduce Powell’s influence before his term ends in May 2026. Trump is expected to select a candidate who favors more aggressive rate cuts to stimulate economic growth. Many analysts believe this could lead to a more dovish Federal Reserve stance, encouraging borrowing and investment.
Furthermore, the US dollar retreated to its lowest level since April 2022. This drop reflects concerns about tariff impacts and a potential US default as well. Treasury yields fell as well, with the 10-year note trading around 4.28%. These movements indicate growing expectations for easier financial conditions.
Investors are now focused on Friday’s release of the Personal Consumption Expenditures (PCE) report. This key inflation gauge will help determine if tariffs have pushed prices higher recently. Market watchers widely expect the report to influence the Federal Reserve’s future policy steps significantly.
In summary, Fed Chair replacement plans are driving market optimism and increased bets on rate cuts. The stock futures rise, dollar decline, and lower Treasury yields all of it reflect this sentiment. Investors will closely monitor economic data and Fed signals as they shape the US financial landscape.
For more updates on this story, visit DC Brief.
