US President Donald Trump said he would announce the successor to the chairman of the federal reserve chairman Jerome Powell in the summer, even though the Fed Chair is completed next May.
The Wall Street Journal report said Trump could name other Fed chairs until September or October or in the summer.
Since Powell had almost 11 months to the end of his term of office, Trump remains frustrated by criticizing the movement of the Fed chair so that it does not say interest rates despite the inflation.
However, the announcement of the name of another Fed chair in this time would be a surprising development in the 111 -year history of the US.
Donald Trump can name the chair “Shadow” Fed
In the White House on Wednesday, the head of the National Economic Council Kevin Hassett said that another Fed’s chair would not be Jerome Powell.
“I think the president will choose the person he likes and it will not be Jay Powell,” Hassett said.
According to reports, Hasset together with three others – former Governor Fed Kevin Warsh, current Governor Fed Christopher Waller and Finance Minister Scott Bessnt – among the best candidates for the post of head of the US central bank.
Also read | Trump considers the name of another Fed chair at the beginning of the offer to undermine Powell
The person, if Trump continues with appointment right now, could act as a “shadow” Fed chair – the idea of Scott Bessnt first hovered in 2024 before becoming the Minister of Finance.
What happens to Jerome Powell?
Some analysts see Trump’s naming another Chief of Fed as an effort to influence monetary policy through a “shadow” chair before Powell leaves the office in May 2026.
According to former Fed officials and academics who quoted the Fed Fed, this step could also mean that the economic continuous, which prevailed after Trump joined the office, could intensify.
“It’s an absolutely terrible idea,” CNN quoted Alan Blinder, who served as clerk No. 2 in the Fed in the mid -90s.
Fed Fed may mean that markets could be introduced into an uncertain position if two powerful voices say the opposite of monetary policy, he said.
Also read | Trump indicates the exchange of Fed’s chair Jerome Powell: “I know 3 or 4 people”
“If they do not sing from the same book that seems likely, it only causes confusion in the markets,” Blinder CNN said.
Greg Valliere, the main American political strategist of AGF Investments, has made similar comments, according to the intelligence report.
“It’s a terrible idea, it certainly bothers and confuses the financial markets if there are two chairs of feeding,” he said.
The main economist of RSM Joe Brusulas warned that the name of the shadow chair of this soon could cause interest rates to undermine – undermine the goal that Trump is trying to achieve.
“Powell is not undermined in any best interest, because it will almost certainly be converted to a weaker dollar and rising rates,” CNN quoted.
Also read | Trump indicates the exchange of Fed’s chair Jerome Powell: “I know 3 or 4 people”
White House denies messages
On Thursday, the White House rejected the news that Donald Trump named the Fed chair so early to replace Jerome Powell next year.
“No decisions are immediate, although the president has the right to change his mind,” AFP quoted the White House official.
“The President has many good opportunities to nominate as the next chairman of the Federal Reserve,” the official added.
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