"Being a dictator doesn't work?" JP Morgan strategist warns Wash: Follow in the footsteps of giants, first learn to build consensus.

David Kelli, chief global strategist at JPMorgan Asset Management, said on Wednesday that Kevin Wash, the incoming chair of the Federal Reserve, needs to prove himself as someone who is good at consensus-building rather than a leader who acts unilaterally. "I think this indicates that Kevin Wash will be a chairman, not a ruler," Kelli said. Just before this, current chair Jerome Powell faced an extremely rare internal challenge in his last rate decision, with four members of the committee voting against it, casting a cloud of complexity over the upcoming Wash era. Kelli said the dissenting opinions of several members sent a clear message to the incoming chair: "You really need to talk to everyone on the committee. You must find consensus. You can't just steamroll others with your own ideas." Kelli pointed out that Wash is following in the footsteps of giants - there have only been five Federal Reserve chairs since 1980, all of whom were intellectual giants. He praised outgoing chair Jerome Powell as "an extremely wise, empathetic, and honest person" who "truly led the entire committee forward." Kelli also expressed concern about the expectations from President Donald Trump, stating that "the president believes he has nominated a Federal Reserve chair who will obey him and cut rates for him." It is understood that the Senate Banking Committee officially voted on Wash's nomination this Wednesday, marking a significant step in this important personnel appointment. The nomination has now been submitted to the full Senate for a final vote. Once confirmed and sworn in, Wash is expected to officially succeed Powell on May 15, 2026, becoming the most influential central bank governor globally. During the nomination hearing and voting process, Wash faced tough questioning from Democrats, including whether his personal asset disclosures as a billionaire involved conflicts of interest with major companies such as SpaceX. Opponents like Senator Elizabeth Warren openly questioned whether Wash might become a puppet of executive power, fearing he might sacrifice inflation targets for political loyalty. Additionally, Powell previously stated that he plans to remain on the Federal Reserve Board after his term as chair ends in mid-May, citing the numerous legal challenges the agency currently faces, including an investigation into its building renovation project. He emphasized his desire not to overshadow the incoming chair and to maintain a "low profile" in his role as a board member. There are still questions about Wash's true policy stance. Kelli pointed out that Wash was hawkish during his previous tenure at the Fed, but in the preparatory stages before his recent nomination, he expressed "a completely different set of views." From a market perspective, Wash's "consensus challenge" suggests that the Federal Reserve's decision-making transparency may be tested in the short term. While the Trump administration hopes Wash will stimulate the economy through significant rate cuts, Kelli's comments imply that Wash may be in a state of "defensive leadership" under institutional inertia and the oversight of career officials. Investors are currently closely watching whether Wash will immediately adjust the rate trajectory when he takes office, or whether he will adopt a more moderate and data-dependent policy stance to appease internal doubts than expected.