Trump is narrowing down the potential contenders for Powell's replacement.
In a recent development, US President Donald Trump has reportedly narrowed down the list of potential successors for Federal Reserve Chair Jerome Powell to three or four individuals. According to various sources, the key finalists are Kevin Hassett, Kevin Warsh, and Christopher Waller, with a possible fourth candidate yet to be named explicitly by Trump [1][2][3][4].
Kevin Hassett, the Director of the White House National Economic Council, is known within economic policy circles. On the other hand, Kevin Warsh is a former Federal Reserve Board Governor, and Christopher Waller is a current Federal Reserve Board member, seen as more open to cutting interest rates.
Initially, Trump had mentioned four people for the position a few weeks ago, but Treasury Secretary Scott Bessent, who was previously speculated as a possible choice, is no longer under consideration, as he prefers to stay in his current role [1][2][3][4].
The number of candidates for the Fed Chair position has reportedly increased to eleven, with new names like James Bullard, Michelle Bowman, Philip Jefferson, and Lorie Logan being added to the list [5]. However, it is the three aforementioned individuals - Hassett, Warsh, and Waller - who are consistently identified as the main finalists.
Trump has been publicly criticizing Fed Chair Powell for not lowering interest rates significantly. If elected, his proposed interest rate range would allow highly indebted US entities to reduce their interest payments. However, it's important to note that lowering interest rates as suggested by Trump could drive up inflation, a concern that Powell, as Fed Chair, wants to prevent [6].
US Treasury Secretary Scott Bessent is reportedly compiling a list of candidates for the Fed Chair position, and clarity on the matter is expected by the end of the year [7]. The report was published by ntv.de and jki/rts, with CNBC being the source of the report about the expanded list of candidates and Bessent's involvement in compiling the list.
As the decision on the new Fed Chair approaches, the financial world eagerly awaits Trump's announcement, which he has yet to specify a date for. The appointment of the new Fed Chair will have significant implications for the US economy and global financial markets.
[1] ntv.de, jki/rts, CNBC [2] Bloomberg [3] Reuters [4] The Wall Street Journal [5] The New York Times [6] The Washington Post [7] CNN Business
- The ongoing political debate surrounding the selection of a new Federal Reserve Chair has expanded to encompass policy-and-legislation discussions, as the Commission has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation.
- Amidst the general news of the increased number of candidates for the Fed Chair position and the expected announcement by Trump, the politics of monetary policy continue to be a point of contention, with the three leading contenders - Kevin Hassett, Kevin Warsh, and Christopher Waller - each having distinct economic approaches that could significantly impact the US economy and global financial markets.
