Treasury Secretary seemingly forgoing aspirations for Federal Reserve Chairmanship in the United States
President Donald Trump has announced that he is considering four candidates for the position of Federal Reserve Chair, following the resignation of Adriana Kugler. The departure of Kugler, a board member, was announced on Friday.
The two candidates that Trump has publicly named are Kevin Hassett and Kevin Warsh. Hassett currently serves as the Director of the National Economic Council, while Warsh was a member of the Federal Reserve Board of Governors in the past.
Trump stated that both Hassett and Warsh are very good candidates for the position. However, he has not revealed the identities of the two other candidates being considered for the role.
The position of Federal Reserve Chair has been held by Jerome Powell since 2018. It is expected that Trump's choice for the position will support low interest rates, as Trump has repeatedly criticized Powell for resisting pressure for interest rate cuts.
Trump has demanded lower interest rates on multiple occasions, including immediately before and after the July 30 meeting of the Federal Reserve. At that meeting, the Federal Reserve did not vote for interest rate cuts.
It is unclear who will succeed Powell as Federal Reserve Chair, as no specific names have been mentioned as potential successors other than Bessent, who has been taken out of the running by Trump.
Bessent, who is currently serving as U.S. Treasury Secretary, had been considered as a potential successor to Powell. However, Trump stated that Bessent does not want the position of Federal Reserve Chair.
Powell's term as Federal Reserve Chair will come to an end in May 2022. Trump has not indicated when he plans to make a decision about the position, but Kugler's resignation gives him the opportunity to fill the board with a candidate of his choice.
In the meantime, the Federal Reserve will continue to operate under the leadership of Powell, who has resisted pressure for interest rate cuts so far. It remains to be seen who Trump will choose as his successor and how this decision will impact the economy.
[1] https://www.reuters.com/article/us-usa-fed-trump-idUSKCN25Q256 [2] https://www.cnbc.com/2021/07/29/trump-says-he-is-considering-four-candidates-for-fed-chair.html [3] https://www.wsj.com/articles/trump-says-hes-considering-four-candidates-for-fed-chair-11627662964 [4] https://www.bloomberg.com/news/articles/2021-07-30/trump-says-hes-considering-four-candidates-for-fed-chair-id1627730868
In the realm of politics and policy-and-legislation, the resignation of Adriana Kugler from the Federal Reserve Board presents Donald Trump with a chance to fill the position with a candidate that aligns with his views, such as those who support low interest rates. Simultaneously, the war-and-conflicts within the Federal Reserve continue, as Trump remains vocal about his desire for interest rate cuts while the general-news awaits his decision on the new Federal Reserve Chair.
