There are currently only three names on the narrower list of US President Donald Trump for the post of Central Bank chief. The Federal Reserve (Fed) should lead after Jerom Powell, the current director of the National Economic Council Kevin Hassett, former Governor Fedu Kevin Warsh or the current governor Christopher Waller. Reuters informed about it.
The current boss was described by Trump as too slow
At a meeting with journalists in the White House, Trump said that three financiers are finalists in the process of choosing the future President Fed. He added that he also considered the Minister of Finance Scott Bessent, but he did not show interest in the management of the Fed. Bessent, who was present at the meeting, confirmed it.
“I had four. Now I am talking about three. He told me he wasn’t going to leave his post,” Trump said toward Bessent.
Trump wants a man’s new head of a man who is inclined to reduce interest rates faster. He has already attacked Powell’s current boss several times, describing him as “too slow” to deal with high loan costs and accused him of damaging consumers with high rates at mortgages.
The situation in the US labor market is getting worse
Powell keeps interest rates at unchanged level this year in fear that Trump introduced high import duties will lead to a significant acceleration of inflation. Recently, however, its concerns have increased especially in connection with the development of the labor market.
The latest report of the Ministry of Labor also confirmed the deterioration of the situation in the US labor market. She showed that in August, only 22,000 new jobs were created in the US outside agriculture, while economists expected 75,000 new jobs. In July they were created after the revision up to 79 thousand.
All three candidates agree with Donald Trump’s administration steps
Choosing the future Fed chief is crucial for financial markets. They closely monitor the selection process, which estimates the future development of interest rates, inflation policy, as well as the independence of the central bank.
Hassett is known for the support of Trump’s customs policy as well as his next steps. Even in connection with interest rates, he claims that the Fed holds them too high. Similarly, Warsh called on the management of the central bank to “change its regime”. The Waller also prefers to reduce rates and voted for their reduction at the end of July, where the bank did not change the rates. He was in early August marked with sources from the surroundings of Trump as a favorite.
Bloomberg said that Trump’s advisors appreciate Waller for his preferred monetary policy based on forecasts rather than current economic data. In addition, they pointed out his comprehensive knowledge of the Fed system. He was appointed by Trump’s Governor of the US Central Bank during his first term of office in 2020.
