The situation surrounding Fed Chair Jerome Powell is complicated by pressure from the Trump administration, which is considering replacing him.
Search for Jerome Powell's Replacement
Treasury Secretary Scott Bessent confirmed that the Trump administration has begun searching for Jerome Powell's replacement. In a Bloomberg interview, he mentioned that this process would be initiated in the coming weeks and might conclude by October. Powell's term is set to expire in May 2026.
Trump's Pressure on the Fed
President Trump is pressuring Powell to cut interest rates by at least 1%. He even sent Powell a handwritten letter urging him to resign. Bessent further emphasized the need for rate cuts, citing softening inflation and tariff impacts.
Who are the Potential Candidates?
Potential candidates to replace Powell include Kevin Hasset, Christopher Waller, and Kevin Warsh. Bessent noted that while his name is being considered, he is not currently interested in the position, although he is willing to accept it if appointed by the President. 'I have the best job in DC,' he stated.
The situation surrounding Fed Chair Jerome Powell remains tense. With pressure from the Trump administration and the possibility of his replacement, a new phase in U.S. monetary policy is approaching.
