Former President Donald Trump revealed he is actively seeking a replacement for Federal Reserve Chair Jerome Powell, signaling a shift in potential monetary policy leadership should he win the upcoming presidential election. Speaking to reporters, Trump stated that he has narrowed down his list of potential successors to ‘three or four people.’
Trump has been a vocal critic of Powell, whom he originally appointed to head the Fed in 2018. During his presidency, Trump frequently expressed dissatisfaction with Powell’s management of interest rates, often calling for more aggressive rate cuts to stimulate the economy. His renewed interest in replacing Powell comes as the U.S. grapples with lingering inflation concerns and debates over the Fed’s rate-hiking campaign.
Jerome Powell’s second term as Fed Chair is set to run through 2026, but a new President could opt not to reappoint him or try to influence Fed governance through appointments to other key positions at the central bank. While the Federal Reserve is designed to be independent from presidential politics, recent years have seen increased political scrutiny of its policies and leadership.
Trump did not name the individuals under consideration but indicated that he was closely evaluating the monetary policy views and economic philosophies of the candidates. Any change in leadership at the Fed could have significant implications for interest rates, inflation management, and financial markets.
The Federal Reserve declined to comment on Trump’s remarks.
As the 2024 election approaches, the possibility of leadership changes at the central bank is likely to be closely watched by investors, economists, and policymakers alike.
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