Trump to Announce Federal Reserve Chair Nominee Next Week, Criticizes High Interest Rates
US President Donald Trump declared on Thursday that he will announce his nominee for the next Federal Reserve chair next week. The new chair will replace Jerome Powell, whose term is set to conclude later this year. Trump shared this timeline during a Cabinet meeting with his secretaries, emphasizing his dissatisfaction with the current monetary policy.
Trump's Comments on Federal Reserve and Interest Rates
During the meeting, Trump expressed strong criticism of the Federal Reserve's current stance on interest rates. He stated, "It'll be a person that will do, I think, do a good job," referring to his upcoming nominee. Trump further elaborated, "We're paying far too much interest in the Fed. The Fed rate is too high, unacceptably high." This remark underscores his ongoing push for lower interest rates, which he believes are negatively impacting the US economy.
Potential Candidates for Federal Reserve Chair
Trump has indicated that he is considering four individuals for the role of Federal Reserve chair. The potential nominees include:
- Kevin Hassett, director of the National Economic Council
- Christopher Waller, a member of the Federal Reserve Board
- Kevin Warsh, former Federal Reserve Governor
- Rick Rieder, head of fixed income at BlackRock
This list highlights a mix of current and former officials with expertise in economic policy and financial markets.
Trump's Criticism of Jerome Powell
Since returning to the White House, Trump has repeatedly criticized Jerome Powell, the current Federal Reserve chair. He has advocated for lower interest rates, arguing that the current levels are detrimental to economic growth. Trump's comments reflect a broader tension between the administration and the Federal Reserve over monetary policy decisions.
The announcement of a new nominee comes at a critical time for the US economy, as policymakers navigate challenges such as inflation and economic recovery. Trump's emphasis on selecting a chair who aligns with his views on interest rates suggests a potential shift in the Federal Reserve's approach under new leadership.
