The Federal Reserve’s cautious interest rate-cutting strategy has irritated President Trump more and more. Because of that, the President is now considering announcing his choice to succeed Chair Jerome Powell sooner than anticipated. Trump has recently suggested naming his successor by September or October, and some aides say he may even move sooner, even though Powell’s term is still 11 months long.
Trump is considering a number of applicants. Kevin Hassett, the director of the National Economic Council, and former Fed governor Kevin Warsh are leading candidates, according to people with knowledge of the situation. Both men’s allies are also pitching Treasury Secretary Scott Bessent. Former World Bank President David Malpass and Fed Governor Christopher Waller are among the other names being considered.
Trump considering Warsh among others to replace Jerome Powell
The customary three- to four-month transition period would be broken if a successor were named this summer or fall. By doing this, the chair-in-waiting would have the opportunity to shape market expectations prior to assuming office. In comments analyzed by The Wall Street Journal, Warsh stated, “I wouldn’t be shocked if the president made a nomination earlier than would be customary, just to…try to make a lame duck lamer or something like that.” President Trump himself recently said “I know within three or four people who all I’m going to pick. He goes out pretty soon, fortunately, because I think he’s terrible.”
Despite being regarded as the front-runner, Warsh has raised concerns due to his independence and hawkish views. “If the president wants someone who is weak, I don’t think I’m going to get the job,” he stated. Hassett has expressed his lack of interest to others. Bessent hasn’t ruled himself out, saying, “I’m happy to do what President Trump wants me to do,” even though he stated that interviews wouldn’t start until September.
Trump appointee Waller gained notoriety for advocating rate cuts as early as the Fed’s next meeting. “We’ve been on pause for six months, thinking that there was going to be a big tariff shock to inflation. We haven’t seen it,” Waller stated. An early selection could lead to issues. According to economist Douglas Rediker, “the earlier Trump names his pick, the bigger the bull’s-eye on that person’s back and the less likely that that person is the actual successor to Powell.”
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