Narrowing down the potential Federal Reserve chair candidates, Trump leaves out Treasury Secretary Bessent from contention.
President Donald Trump has narrowed down his list of potential Federal Reserve chair candidates to four, with two key contenders remaining unnamed. Among the two unidentified candidates are Kevin Warsh and Kevin Hassett, both of whom Trump has expressed positive sentiment towards, referring to them as "very good."
Kevin Warsh, a former Fed governor, is currently a fellow at the Hoover Institution and a lecturer at Stanford. Warsh is known for his USD-friendly stance and has advocated for higher interest rates in the past. He has also been increasingly critical of Powell's Federal Reserve, calling for sweeping changes in the Fed's conduct of business. Warsh has suggested a new Treasury-Fed accord similar to the one in 1951, and has been supportive of cutting interest rates, a key goal of Trump's.
On the other hand, Kevin Hassett is currently serving as the Director of the National Economic Council and has been closely involved in Trump’s economic policies. Before joining the Trump White House, Hassett worked at the right-leaning American Enterprise Institute. Hassett served as Chairman of the Council of Economic Advisers in the first Trump administration and has a doctoral degree in economics from the University of Pennsylvania. After leaving the Hoover Institution, Hassett returned to the administration to help deal with the pandemic.
Hassett's close ties to the administration may raise concerns about Fed independence, but he has been supportive of the president's agenda. In 2019, Trump called Hassett a "true friend" in his farewell announcement. Hassett has also expressed frustration with people resisting Trump in various government positions, as revealed in an interview on CNBC.
Trump is deciding whether he'll nominate someone to permanently join the board and possibly succeed Powell or simply serve out the remaining months of Kugler’s term. Adriana Kugler, one of the Fed's governors, has stepped away from her role, creating an opening for Trump to name a new Fed governor.
Trump plans to make a decision on his pick to join the Fed's board of governors before the end of the week. The two other potential candidates that President Trump has not named yet are Kevin Warsh and Kevin Hassett.
- Beyond Federal Reserve chair candidates, President Donald Trump's administration is also deliberating over policies in areas such as politics, business, economy, migration, war-and-conflicts, policy-and-legislation, crime-and-justice, accidents, fires, sports, and sports-betting.
- Seattle, where the tech giant Microsoft is headquartered, may be affected by Trump's policies, particularly those relating to business and the economy.
- Kevin Warsh, being a fellow at the Hoover Institution, has voiced concerns about the Federal Reserve's conduct of business, calling for sweeping changes, and has suggested a new Treasury-Fed accord.
- President Trump's decision on his pick for the Federal Reserve board of governors could have significant implications for car-accident insurance rates, as interest rates play a role in the cost of borrowing money.
- The media, covering general-news, politics, and economics, closely follows the potential candidates for the Federal Reserve chair position and their respective stances.
- Kevin Hassett, currently serving as the Director of the National Economic Council, has shown support for Trump's agenda, and his close ties to the administration may raise concerns about the Federal Reserve's independence.
- Trump's choice among the unnamed candidates, Kevin Warsh and Kevin Hassett, could potentially affect fire prevention policies, as interest rates and economic stability impact the availability of funding for emergency services.
- The sports world, including sports-betting markets, remains unaffected by Trump's decision on the Federal Reserve, but it remains to be seen if future policies may have consequences for this industry.
