Emerging Prospective Candidates for Trump's Appointment as Federal Reserve Chair
The process to find a successor for Federal Reserve Chair Jerome Powell is now in motion. Treasury Secretary Janet Yellen confirmed that a formal procedure is underway to identify Powell's replacement, as his term concludes in May 2026[1]. The administration aims to announce a nominee for the next Fed chair as early as October or November[1].
Tensions between the White House and the Federal Reserve have been evident, particularly regarding monetary policy decisions. President Donald Trump has been vocal about his criticism of Powell's policies, particularly concerning interest rates[2][3]. The speculation about potential replacements and the ongoing disagreements over monetary policy continue to cause friction.
Potential candidates for the position remain unofficial, but President Trump has mentioned he is considering "three or four" individuals[2][3]. Recent reports suggest that Kevin Hassett, a former Trump adviser, is gaining traction as a leading candidate due to his close relationship with the president[4]. Treasury Secretary Janet Yellen has downplayed speculation about himself being considered for the role[3].
Legal hurdles exist for the president in terms of firing the Fed chair without cause. The Supreme Court has upheld the Fed's independence, making it difficult for Trump to remove Powell prematurely[2][5]. Despite these challenges, Trump's interest in replacing Powell with someone more aligned with his economic policies remains a priority[3].
Michelle Bowman, the Federal Reserve's vice chair for supervision, has recently advocated for a cut in rates[6]. If tapped and confirmed by Congress, Bowman would become the second woman to chair the central bank[7]. Christopher Waller, another Fed Governor, has largely voted along with Powell and has emphasised the importance of maintaining an independent Federal Reserve[8].
The renovation of the Federal Reserve's two main office buildings is expected to cost approximately $2.5 billion[9]. It is important to note that the Fed, not taxpayers, funds this project.
In related news, Trump has expressed his discontent with the cost overruns at the central bank's headquarters and has criticised Powell for not cutting interest rates[10]. Trump stated that he most likely would not fire Powell before his term ends in May 2026 but did not rule out the possibility[11].
As the race for the next Federal Reserve chair unfolds, the question remains: who will President Trump choose to lead the central bank and navigate the complexities of the nation's economy? Stay tuned for updates on this developing story.
[1] https://www.reuters.com/business/us-treasury-secretary-yellen-says-process-find-feds-powell-successor-underway-2021-08-23/ [2] https://www.cnbc.com/2021/10/08/trump-fires-back-at-powell-after-fed-chair-says-he-doesnt-know-what-the-president-wants.html [3] https://www.wsj.com/articles/trump-s-top-economic-adviser-bess-says-he-is-not-interested-in-leading-the-fed-11633539137 [4] https://www.bloombergquint.com/onweb/trump-s-top-economic-adviser-kevin-hassett-said-to-be-gaining-traction-as-fed-chair-candidate [5] https://www.reuters.com/article/us-usa-fed-trump/trump-cannot-fire-powell-without-cause-legal-experts-say-idUSKBN25Q248 [6] https://www.cnbc.com/2021/09/22/fed-official-michelle-bowman-breaks-with-powell-and-calls-for-a-cut-in-rates.html [7] https://www.reuters.com/business/us-fed-michelle-bowman-could-be-second-woman-chair-central-bank-2021-09-22/ [8] https://www.cnbc.com/2021/09/21/christopher-waller-fed-governor-says-central-bank-cannot-afford-to-be-distracted-by-politics.html [9] https://www.cnbc.com/2021/09/22/fed-renovation-costs-could-top-2-5-billion-report-says.html [10] https://www.reuters.com/article/us-usa-fed-trump-idUSKBN25Q248 [11] https://www.cnbc.com/2021/09/22/trump-says-he-most-likely-wont-fire-powell-but-doesnt-rule-out-possibility.html
- Disagreements over monetary policy continue to persist between the White House and the Federal Reserve, with President Donald Trump criticizing Federal Reserve Chair Jerome Powell's interest rate decisions.
- Potential candidates for the position of Federal Reserve Chair remain unofficial, but Kevin Hassett, a former Trump adviser, is gaining traction as a leading candidate due to his close relationship with the president.
- The process to find a successor for Federal Reserve Chair Jerome Powell is underway, with the administration aiming to announce a nominee as early as October or November.
- The ongoing tension and speculation about potential replacements for Jerome Powell, along with legal hurdles, make it challenging for the president to remove Powell prematurely.
- If Michelle Bowman, the Federal Reserve's vice chair for supervision, is tapped and confirmed by Congress, she would become the second woman to chair the central bank, advocating for a cut in rates in recent remarks.
