Fed Chair nominee could be announced soon
A few headlines emerged from President Trump’s CNBC interview yesterday. First, Treasury Secretary Scott Bessent is off the shortlist to replace Federal Reserve Chair Jay Powell.
Trump pointed to four frontrunners - Kevin Warsh and Kevin Hassett by name, with Chris Waller and David Malpass possibly rounding out the group. Betting websites currently place Hassett slightly ahead of Warsh.
Trump hinted that the new chairman might be announced soon to replace resigning member Adriana Kugler, rather than waiting until January.
Trump’s open attacks on the Bureau of Labor Statistics over payroll revisions have not had much market impact, but it will be interesting to see whether the selected Fed chair candidate echoes that narrative. If so, it could ignite fears of a disconnect between Fed policy and official data, ING's FX analyst Francesco Pesole notes.
Source: Fxstreet