every edited| Jin Mingyu
According to local time, on October 28,Headquarters reporterLearned that,US President Trump said Fed Chairman Powell was "incapable" and said his term would end in May next year, when a new candidate would be replaced.。
Trump said: “We have an incompetent Fed chief, but he will leave in a few months and we will replace him.”
Federal Reserve Chairman Powell's term will end in May 2026. Trump has repeatedly publicly called on the Federal Reserve to cut interest rates sharply and asked Powell to resign.
Currently, it is widely expected that the Federal Reserve will announce a 25 basis point cut in the federal funds rate at its two-day policy meeting ending on October 29. This will be the second consecutive time that the Federal Reserve has cut interest rates.Trump has previously said he hopes the Federal Reserve will cut interest rates by 300 basis points.。Analysts said that the new chairman is crucial because it will directly affect the direction of future U.S. monetary policy and the independence of the central bank.
On Monday, US Treasury Secretary Besson said:The range of candidates for Federal Reserve Chairman has been narrowed to fiveThe current members of the U.S. Federal Reserve Board, including Christopher Walker, Michelle Bowman, former U.S. Federal Reserve Chairman Kevin Wasch, the head of the National Economic Committee at the White House, Kevin Hasite, and Rick Reid, executive officer at Belgrade. The list of five members includes senior members from the U.S. Federal Reserve, the White House and Wall Street.
Bescent said that he planned to start a new round of interviews and submit a "list of high-quality candidates" to US President Trump at the end of November. Trump himself has also said that he expects to determine the nominee before the end of this year.
Some analysts have pointed out that Trump’s desire to make a decision before the end of the year may reflect some tricky factors surrounding Powell’s position. Powell’s presidency will end in May next year, but he may continue to remain in the Federal Reserve Council, serving as one of the seven board members until January 2028.
According to the Federal Reserve Act, the chairman of the Federal Reserve is nominated by the president and must be selected from the members of the Board of Governors of the Federal Reserve. The nomination must be confirmed by the Senate. If the president of the United States wants a person to be the chairman of the Federal Reserve, he usually needs to make him a governor of the Federal Reserve first.
Of the above five candidates,Wash and Hasite are seen as the leaders, both of whom have a close relationship with Trump. Trump has publicly stated that both of them like Kevin himself.。
Hashit is the closest of those with Trump.He held senior White House positions during Trump's two terms and worked for Trump's son-in-law Kushner's private equity firm.He is an attractive choice for Trump, a person who attaches great importance to loyalty.If Hassett becomes chairman of the Federal Reserve, it will be difficult for the Fed to be independent of the White HouseIn the event of a crisis or a surge in inflation, Hashit has little room to spin, and the Federal Reserve’s independence will be further threatened.
Walsh served as a Federal Reserve Governor during the 2008 global financial crisis. He once criticized the Federal Reserve for deviating from its price stability mission and excessive quantitative easing in non-crisis periods, which contributed to fiscal irresponsibility and damaged its independence. This position satisfies Trump.
Walker, the current Fed executive appointed by Trump in 2020, may be in line with Trump’s expectations for the “Central Corner” candidate’s image. Its advantage lies in deep understanding of the Federal Reserve’s operation mechanism and how it should be reformed according to the Trump administration’s preferences.
Before joining the Federal Reserve, Bowman served as a state banking commissioner in Kansas. She has been attacking "conventional wisdom" within the Fed and opposing many of the Biden era's regulatory measures, which may appeal to Trump, who seeks a comprehensive reform of the Fed.
Reid is a prominent Wall Street figure with in-depth knowledge of fixed income markets that are highly tied to Federal Reserve policy. He is familiar with the market, but not familiar with the bureaucracy within the Federal Reserve. Some people think he can bring a "real new perspective" to the Fed.
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