US President Donald Trump on Thursday 26th June escalated his criticism of the chairman of the Federal reserve system Jerome Powell, called him “terrible” and revealed that he meant several potential successors.
“I know that in the three or four people I choose, Trump told reporters in The Hague on the edge of the NATO summit as he asked if he would talk to candidates to replace Powell.
The top is assembled for another Fed chair
According to Reuters, Trump’s list of best candidates:
Former Governor Fedu Kevin Warsh
Head of the National Economic Council Kevin Hassett
Current Governor Fed Christopher Waller
Minister of Finance Scott Bessnt
Hassett refused to answer directly when he asked on Wednesday if he discussed the potential replacement with Trump and said, “I think the president will choose the person he likes and will not be Jay Powell.”
Powell warns of inflation of tariffs
President Powell testified before Congress on Wednesday (June 25) and acknowledged that recent inflation data was milder than expected, but warned that it could change new tariffs.
“Higher tariffs could increase inflation this summer,” Powell said the US Senate panel. While tariffs are often considered one -off price shocks, he noted: “This is not the law of nature.”
“If it comes fast and is over and is done, then yes, it is very likely that it is a one -time thing,” Powell said. “But it’s the risk we feel. Like people to maintain stable prices, we need to handle this risk.”
Feed cautiously to cut rates
The federal reserve system maintained its benchmark interest rate between 4.25% and 4.5% since December. While many are still expecting to reduce rates at the end of this year, Powell emphasized the importance of clarity on the outlook of inflation before the measure.
“We should start seeing it during the summer, in the June issue and in July,” he said. “If we do not do so, we are perfectly open to the idea that the passage (consumer tariffs) will be less than we think-and if so, it will depend on politics.”
Republican pressure
During hearing in the house and the Senate this week, Republican legislators pushed Powell on why he no longer moved to reduce rates. Powell advocated the caution of the Fed and quoted the uncertain trajectory of inflation due to a growing import tax.
“The effects of tariffs could be big or small. It’s just something you want to approach carefully,” Powell told the senators.
(tagstotranslate) Donald Trump
