UBS On-Air: Market Moves UBS On-Air: Paul Donovan Daily Audio 'Is a name emerging?'
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Dec 1, 2025 President Trump's unconfirmed nominee for the Federal Reserve Chair stirs market speculation, with expectations of Senate approval for non-radical candidates. Paul Donovan discusses the implications of increased independence among Fed members, potentially dulling the Chair's influence on policy. He also highlights South Korea's strong chip exports, driven by AI demand, contrasting it with broader trade trends. Lastly, Switzerland's rejection of a wealth tax reflects rising concerns over wealth inequality.
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Fed Chair Choice May Not Change Policy
- Markets assume the Senate will confirm the President's Fed nominee when names aren't radical.
- Fed voting independence, however, can blunt the Chair's policy impact.
Political Picks Face Institutional Limits
- A nominee like Kevin Hassett might push for rate cuts, echoing political influence on past Chairs.
- But past Fed rebellions and recent independent voting patterns suggest limited single-person control.
Chip Exports Drive Korea's Figures
- South Korea's strong November export growth was led by chip shipments.
- This reflects AI-driven chip demand rather than broad goods demand.