Introduction to the Federal Reserve Chair Selection
President Donald Trump recently appointed one of his business advisors to the top ranks of the Federal Reserve, but his next election will be far more consistent. Plans for the selection of the next FED chair are already taking shape. Trump appointed the economist of the White House, Stephen Miran, on Thursday to temporarily fill a free seat on the Fed governor’s council, although he still has to be confirmed by the Senate.
The Search for the Next Fed Chair
In the meantime, the Trump administration also interviewed candidates for an even more powerful role: Fed Chair. The current chairman, Jerome Powell, has anger for his refusal to coordinate the demands of the President to reduce interest rates – and his term in office will take place in May. It was only last week that Trump’s search for the next year has drawn the most powerful central bank in the world in various twists.
Potential Candidates
Trump said that he no longer gave finance Minister Scott Bessent for the job. In the meantime, Christopher Waller, a current governor of the FED, gained unexpectedly with the inner circle of the president, according to people who are familiar with the matter. And two Republicans named Kevin – former feder of the Fed, Kevin Warsh and economist Kevin Hassett, stay on Trump’s shortlist. It is also possible that, when he is confirmed, Miran impressed the President so much that he is increased to lead the Fed.
Christopher Waller’s Rise to Prominence
Waller was appointed to the Fed board of Trump in 2020, and until recently he had built up a reputation as an important messenger in the guidelines of the Fed. After the Fed had aggressively thrown the interest rates to count the inflation in 2022 and 2023, the investors heard the speeches from Waller closely in order to obtain indications of when the central bankers could finally lower. Last month Waller was one of two FED governors who had opposed the recent decision by the Fed to keep the loan costs stable for the fifth time in a row and instead to support interest rate cuts.
Kevin Warsh and Kevin Hassett
Warsh, a long-time Trump ally, said that the President’s expansive tariffs will not bring inflation into inflation – an attitude that contradicts the general consensus among economists. Hassett, a doctoral student with a long success story with the support of republican politicians, was an important supporter of Trump’s comprehensive economic agenda. For example, Hassett – like Warsh – has vehemently defended Trump’s tariffs.
The Future of the Federal Reserve
Both Warsh and Hassett said that the Fed should remain independent. The selection of the next Fed Chair will have a significant impact on the future of the Federal Reserve and the US economy. As the search continues, it is clear that Trump is looking for a candidate who shares his economic views and is willing to work with him to achieve his goals. The outcome of this selection process will be closely watched by economists, investors, and policymakers around the world.
