President Donald Trump has announced his finalists for the Federal Reserve Chair, sparking interest among politicians and economists regarding the potential changes in monetary policy.
Candidates for Fed Chair
Trump noted that the final list includes "two Kevins and two others." Speculations suggest one Kevin could be Kevin Hassett, former White House economic adviser, and the other could be Kevin Warsh, a proponent of hawkish monetary policy.
Other potential candidates mentioned include Christopher Waller, a current Fed Governor with conservative views, and Larry Kudlow, Trump's former top economic adviser.
Trump's Actions and Their Impact
Recently, Trump dismissed the Commissioner of the Bureau of Labor Statistics (BLS), drawing attention to his intent to influence the Fed's policies. Despite the removal of an official responsible, soft labor data may bolster his case for looser monetary policy. In response to slowing job growth, markets now speculate about a likely Fed rate cut.
Markets Await Changes
As a September rate cut looms, investors are closely watching developments, particularly within the cryptocurrency sector. A Fed chair favorable to Trump could expedite rate reductions, affecting the valuation of assets like Bitcoin and Ethereum.
As Trump gains influence over the Federal Reserve, significant shifts in U.S. monetary policy may be on the horizon. The focus remains on who will be the next Fed Chair and how swiftly they will move to implement rate cuts.
