Trump's chosen appointees for the Fed, according to Bessent, are anticipated to redefine the discourse about monetary policy guidance
In a significant development, President Donald Trump is actively searching for a successor to Chairman Jerome Powell of the Federal Reserve, with Powell's term set to end in May 2026. Among the potential candidates, Treasury Secretary Scott Bessent has identified Kevin Warsh, Christopher Waller, and Kevin Hassett as primary contenders.
During an interview on FOX Business' "Kudlow" on March 7, 2025, Bessent discussed the search for a new Fed chair, U.S.-China trade talks, and the perceived bloated nature of the Federal Reserve organization. Bessent expressed a desire for candidates who possess strong opinions on monetary policy, regulatory policy, and the ability to streamline and revamp the Federal Reserve.
Bessent's recommendation for a Fed board position went to Stephen Miran, current chairman of the White House National Economic Advisory Committee. This move could potentially make Powell a lame duck, according to Larry Kudlow.
The market is currently pricing in a substantial probability of rate cuts over the coming months, as per Treasury Secretary Bessent. In the same interview, Bessent mentioned that if the original numbers had been used, the Fed could have been cutting interest rates as early as June or July.
Interestingly, Trump is also considering reappointing Janet Yellen for a position at the Federal Reserve. However, no new information about U.S.-China trade talks or the state of the U.S. economy was provided.
Fox News' Michael Dorgan contributed to the report, which also revealed that there are two vacancies on the Fed board, and President Trump will have a majority of the board in D.C. after the appointments. Bessent has stated that President Trump has an open mind regarding who will lead the Federal Reserve.
The search for a new Fed chair is ongoing, with the decision expected by the end of the week. As the economy continues to evolve, the choice of the next Fed chair will undoubtedly play a crucial role in shaping monetary policy and the overall economic landscape.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
