Trump: starts interviewing Federal Reserve candidates

Trump: starts interviewing Federal Reserve candidates

President Donald Trump has initiated the process of interviewing potential candidates for the Federal Reserve chair position and an open seat on the Board of Governors. In a recent interview with CNBC, Trump revealed that he has narrowed down his list to four individuals, including Kevin Hassett and Kevin Warsh [1].

Kevin Hassett, currently serving as the White House national economic advisor, has been supportive of the president's economic agenda, including advocating for income tax cuts and tariffs [1]. Hassett previously served as chairman of the Council of Economic Advisers in the Trump administration and holds a doctoral degree in economics from the University of Pennsylvania [1].

Kevin Warsh, a former Federal Reserve governor who stepped down in 2011, is also under consideration. Warsh has been critical of current Federal Reserve Chair Jerome Powell and has called for sweeping changes in the Fed's policy conduct [1]. He is currently a fellow at the Hoover Institution.

The president has stated that he is considering these candidates for both the open seat on the Federal Reserve's Board of Governors and the potential Fed chair position when Powell's term ends in May 2026 [1]. Additionally, Trump mentioned that he is open to promoting his pick for the open seat to the Fed chair position if they are successful in their tenure [1].

Trump has been highly critical of Powell, whom he has dubbed "too late" in cutting interest rates. The president has floated the idea of having the Fed's board of governors take full control of the U.S. central bank from Powell, but he has held off on dismissing the Fed chair after a recent Supreme Court ruling suggested he could only do so for cause rather than out of policy disagreements [1].

The news that Trump plans to make a decision on the Fed chair "soon" comes as the Republican president has been highly critical of current Powell. Trump recently floated having the Fed’s board of governors take full control of the U.S. central bank from Powell, whom he has relentlessly pressured to cut short-term interest rates in ways that raise questions about whether the Fed can remain free from White House politicking [1].

Trump's move to interview potential candidates for the Federal Reserve position follows the departure of Fed Governor Adriana Kugler, who announced her resignation last Friday [1]. This created an opening for Trump to name a new Fed governor, with the president stating that it's "a possibility" that his pick to replace Kugler could also be his choice to replace Powell [1].

References:
[1] https://www.pbs.org/newshour/politics/what-we-know-about-trumps-fed-chair-candidates-so-far
[2] https://www.moomoo.com/news/post/85282520/record-tr4cking-news-default
[3] https://asia.nikkei.com/politics/trump-to-announce-us-federal-reserve-appointments-shortly