Trump Says He Thinks He Already Knows His Choice for Fed Chair
President Donald Trump said he thinks he’s identified his choice to be the next chair of the Federal Reserve while asserting people are holding him back from firing the central bank’s current leader, Jerome Powell.
“I think I already know my choice,” Trump told reporters in the Oval Office on Tuesday, without specifying who it is. “I’d love to get the guy currently in there out right now, but people are holding me back.”
Treasury Secretary Scott Bessent, who is leading the search, has said he has narrowed the pool of contenders to current Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett and BlackRock Inc. executive Rick Rieder.
“We have some surprising names and we have some standard names that everybody’s talking about,” Trump said. “And we may go the standard way. It’s nice to every once in a while go politically correct.”
Bessent has said he plans to present Trump with recommendations after the Thanksgiving holiday. Trump has publicly mused about the decision, praising candidates on the list, but has been coy about suggesting if he’s leaning toward any particular candidate.
The pick will replace Powell, whom Trump has repeatedly criticized for being too slow to slash interest rates. Powell’s term as chair ends in May, but his term as governor is not slated to conclude until 2028.
Trump reiterated that he’d like Bessent to take the Fed job, but that the Treasury secretary enjoys his role in the administration too much to leave.
The next chair is likely to be named to a 14-year Fed governor term that opens on Feb. 1. The term that expires at that time is currently held by Stephen Miran, who is on unpaid leave from the White House Council of Economic Advisers.
The next chair will have to maintain a careful balancing act, appealing to Trump’s desire for lower interest rates while also maintaining investor confidence.
Source : Bloomberg.com
