As Jerome Powell's term at the Federal Reserve approaches its end in mid-2024, anticipation builds regarding his successor. President Donald Trump aims to announce his choice by May 2024.
Candidates for Fed Chair
According to sources, the contenders for the Fed Chair position include Kevin Hassett, Christopher Waller, and Kevin Warsh. All three are highly qualified professionals in the fields of economy and finance. Kevin Hassett is among the first candidates being considered by Trump. Christopher Waller, a senior Fed representative and a proponent of interest rate cuts, is also listed among potential nominees. As the May deadline approaches, the uncertainty surrounding the appointment could indicate a possible early departure for Jerome Powell.
Economic Activity and Trump's Remarks
Amid expectations of new appointments, Trump expressed dissatisfaction regarding the financial penalties imposed on Google, which he sees as a flawed decision. He also stated that "The United States will surpass China in terms of electricity production." Furthermore, he criticized the high-interest rates and projected that gas prices could drop to $2 per gallon, raising questions about current employment statistics.
Impact on Financial Markets
Discussions also include the potential reorganization of the SP500 index. While MSTR meets the requirements, it was not included in the index, whereas the trading platform Robinhood plans to be listed in the SP500. Information about Fed committee member Cook, who, despite being relieved of his duties, still appears in official documents, raises legal disputes and draws attention to the current state of affairs within the Fed.
The events surrounding the appointment of the new Fed Chair generate considerable uncertainty in the financial markets. Trump's selection and economic agenda may have long-lasting implications for the nation’s economic policy.
