US President Donald Trump continues to demand Federal Reserve Chair Jerome Powell cut interest rates while exploring options for his replacement.
Trump's Demands on the Fed
Donald Trump has repeatedly urged Jerome Powell to lower interest rates, arguing that it is crucial for supporting the US economy. While Powell insists that cuts should wait, Trump claims that delaying them could harm the economy.
Process of Finding a Successor
US Treasury Secretary Scott Bessent announced that the official process for identifying potential replacements for Jerome Powell has begun. According to Bessent, the process will proceed at President Trump's pace. He noted, "The official process has begun. There are many great candidates, and we will see how quickly the process moves."
Risks to Markets from Uncertainty
Bessent also stressed that uncertainty surrounding Powell's tenure could negatively impact markets. He warned that if Powell remains in position after his term, it could create confusion. "Traditionally, the Fed chair also steps down from his or her position on the board. If he or she acts as a shadow Fed chair, it could create confusion." Bessent stated.
Thus, the ongoing tensions between Donald Trump and Jerome Powell raise concerns among both politicians and economists. As the process of searching for a new Fed Chair gains momentum, the uncertainty surrounding Powell's potential continuation also plays a significant role.
