Trump has a shortlist for Fed Chair

 

Trump has a shortlist for Fed Chair ready

Brendan Smialowski, Chip Somodevilla/Getty Images

As Jerome Powell was finishing up his summer Capitol Hill tour on Wednesday, The Wall Street Journal reported that President Trump could name a successor to Powell—whose term as Fed chair doesn’t end until May 2026—as early as this summer, potentially anointing a controversial “shadow chair.” The dollar dropped by over 0.5% yesterday to a three-year low as investors mulled the possible threat to the political independence of the Fed. The White House said that despite the report, a nomination is not “imminent, although the President has the right to change his mind.” The president, who has threatened to fire Powell for refusing to cut interest rates, said on Wednesday during a press conference that he had “three or four people” in mind for the role. The speculated shortlist: Former Fed Governor Kevin Warsh interviewed for the job eight years ago alongside Powell, but he has been pretty anti-lowering interest rates lately. National Economic Council Director Kevin Hassett and Treasury Secretary Scott Bessent are considered likely options…but both have said they aren’t interested, according to the Wall Street Journal and DealBook. Having a Fed Chair on his side might help Trump, but there are 12 voting members of the committee that determines interest rates. Undermining Powell, and by extension the independence of the Fed, with an early nomination could spook other members.—MM