The incoming Trump administration is expected to significantly alter banking regulations, despite Jerome Powell's leadership at the Federal Reserve. Analysts speculate on how Trump will navigate his relationship with the Fed, especially given his past threats to fire Powell. Legal experts have noted that such a dismissal is not permitted under current law. Additionally, discussions have arisen about the possibility of Trump appointing a 'shadow Fed chair' to counter Powell's influence. The Fed appears to be preparing to mitigate the effects of Trump's supply-side economic policies, which may include aggressive measures similar to those taken during his previous administration when he pressured China through tariffs.