President Donald Trump has narrowed his choices for Jerome Powell’s replacement as the next chair of the Federal Reserve.
The move is sparking discussion on the future of U.S. economic policy.
Four candidates are currently under consideration by President Trump to replace Powell, potentially reshaping U.S. economic strategies, Newsmax reported.
The two names making headlines from Trump’s list are Kevin Hassett and Kevin Warsh.
The news is adding to the intrigue of who will lead the Federal Reserve after Powell’s term concludes in May 2026.
Trump’s criticism of Powell centers on his handling of interest rates, characterizing him as “too late” in these adjustments.
This criticism underscores Trump’s intent to significantly influence the future direction of the Fed.
Further, Trump discussed the possibility of removing Powell from his position, leveraging a Supreme Court ruling that a Fed Chair can only be removed for cause.
Trump has publicly accused Powell of mismanaging a $2.5 billion renovation of Federal Reserve facilities.
Amidst these controversies, the resignation of Fed Governor Adriana Kugler last Friday added complexity, described by Trump as “a pleasant surprise.”
He hinted that her replacement might also be in contention for Powell’s job.
Kevin Hassett, currently a director at the White House National Economic Council, has been lauded by Trump as a “true friend.”
Hassett was praised for his effective management during his tenure as the chairman of the Council of Economic Advisers.
Kevin Warsh, a former Fed governor and a fellow at the Hoover Institution, is known for advocating for lower interest rates and critiquing Powell’s leadership.
Warsh’s perspectives on monetary policy, especially post-pandemic inflation misestimations, align with Trump’s criticisms.
Trump has underscored the capabilities of both potential candidates.
On CNBC’s “Squawk Box,” Trump indicated his support for their economic ideologies, saying:
“I think Kevin and Kevin, both Kevins, are very good.”
Trump emphasized that Treasury Secretary Scott Bessent is not among the candidates for the Federal Reserve Chair.
Bessent prefers to remain in his current position.
“I love Scott, but he wants to stay where he is,” said Trump, clearing up earlier speculations.
This ongoing selection process highlights Trump’s proactive approach toward economic management, reflecting a desire for major changes in how U.S. monetary policy is conducted.
Warsh echoed this sentiment in his commentary, advocating for a “regime change” in policy conduct to address the errors noted post-pandemic, further hinting at the strategic pivot Trump desires from the Federal Reserve.
The decision on who will succeed Powell carries profound implications for the U.S. economy.
With high-profile candidates in consideration, the outcome is poised to influence economic policy and market dynamics significantly.
The financial sector and broader public are closely monitoring this development, anticipating the potential shifts in economic policy under new leadership.
As the decision nears, the discussions around these appointments offer insight into the evolving dynamics at the highest levels of economic decision-making in the United States.
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