Who Will Be Trump’s New Fed Chair? Search Has Reportedly Begun—Here Are The Likely Candidates
By Forbes
Key Concepts:
- Federal Reserve (The Fed)
- Jerome Powell (Current Fed Chair)
- President Donald Trump
- Interest Rates
- Independent Federal Agencies
- Monetary Policy
- Successor Candidates (Kevin Hasset, Kevin Warsh, David Malpass, Christopher Waller)
Potential Firing of Jerome Powell and Successor Speculation
President Donald Trump has reportedly been considering firing Federal Reserve Chair Jerome Powell, a move that could trigger a legal battle over the central bank's independence. According to Bloomberg, Trump discussed this possibility with Congressional Republicans on Tuesday night and is expected to make a decision soon. Trump has denied these claims.
Successor Candidates
Trump has indicated that he is considering "three or four candidates" to replace Powell. Potential candidates include:
- Kevin Hasset: National Economic Council Director.
- Kevin Warsh: Former Fed Governor and vocal critic of Powell's policies.
- David Malpass: Former Trump administration official and ex-World Bank president (reported by The Wall Street Journal).
- Christopher Waller: Current Fed Governor (reported by The Wall Street Journal).
Betting Odds
According to Poly Market, the betting odds for the next Fed chair are:
- Kevin Warsh: 20%
- Kevin Hasset: 18%
- Scott Bessant (Treasury Secretary): 18%
Legal Challenges to Firing Powell
Firing Powell could challenge a 1935 Supreme Court ruling that protects the leaders of independent federal agencies from being fired by the president over policy disagreements. Trump has previously challenged this ruling by removing Democratic commissioners at the Federal Trade Commission, members of the National Labor Relations Board, and the Merit Systems Protection Board earlier this year.
Trump's Criticism of Powell and the Fed
Trump has repeatedly accused Powell of being "too late to lower interest rates." Vice President J. D. Vance accused the Fed of "monetary malpractice" in June.
Fed's Recent Actions
The Fed previously lowered interest rates from a 5.25% to 5.5% target range to a 4.25% to 4.5% range, observing the effects of Trump's economy.
Conclusion
The potential firing of Jerome Powell by President Trump raises significant questions about the independence of the Federal Reserve and could lead to legal challenges. Several candidates are being considered as potential successors, and the situation remains uncertain. The conflict stems from Trump's dissatisfaction with the Fed's monetary policy, particularly regarding interest rates.
Chat with this Video
AI-PoweredHi! I can answer questions about this video "Who Will Be Trump’s New Fed Chair? Search Has Reportedly Begun—Here Are The Likely Candidates". What would you like to know?