{"id":32669,"date":"2025-06-26T17:29:52","date_gmt":"2025-06-26T17:29:52","guid":{"rendered":"https:\/\/financialrush.com\/?p=32669"},"modified":"2025-06-26T17:29:52","modified_gmt":"2025-06-26T17:29:52","slug":"white-house-says-decision-on-nominating-next-fed-chair-not-imminent","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=32669","title":{"rendered":"White House says decision on nominating next Fed chair not \u2018imminent\u2019"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Your guide to what Trump\u2019s second term means for Washington, business and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=b626ec0e-fd69-41cc-b231-1234f9834d7e&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The White House has said a decision on nominating the next Federal Reserve chief is not \u201cimminent\u201d after a report that Donald Trump could nominate a new chair as soon as this summer knocked the dollar.<\/p>\n<p>\u201cNo Federal Reserve chairman decisions are imminent, although the President has the right to change his mind,\u201d the White House told the Financial Times. \u201cThe President has many good options for the next Fed chairman.\u201d <\/p>\n<p>The <a href=\"https:\/\/www.ft.com\/us-dollar\" data-trackable=\"link\">dollar<\/a> on Thursday fell as much as 0.7 per cent against a basket of its trading partners, including the pound and the euro, hitting a level last reached in early 2022. It later rebounded to trade 0.5 per cent lower.<\/p>\n<p>The move came after a Wall Street Journal report late on Wednesday that said the US president was considering announcing his pick to succeed <a href=\"https:\/\/www.ft.com\/jay-powell\" data-trackable=\"link\">Powell<\/a> in September or October, or even as early as this summer. Such a decision would be earlier than usual. <\/p>\n<p>Powell\u2019s term expires in May 2026, but the US president has become increasingly frustrated at the Fed\u2019s reluctance to cut interest rates amid concerns that tariff policies will trigger another bout of US inflation. <\/p>\n<p>Trump said before the report on Wednesday that he knew \u201cwithin three or four people\u201d who he was going to pick to head the US central bank, deriding Powell as \u201cterrible\u201d. <\/p>\n<p>Powell has insisted that politics do not play a role in the Fed\u2019s decision-making, which is focused only on reaching the central bank\u2019s mandates of achieving maximum employment and stable prices. <\/p>\n<p>The White House has not confirmed who is in the running, but former Fed governor Kevin Warsh, US Treasury secretary Scott Bessent, National Economic Council director Kevin Hassett and current Fed governor Chris Waller are considered leading candidates. <\/p>\n<p>Waller said last week that he would back a rate cut as soon as July, contrasting with recent remarks by Powell signalling that borrowing costs should remain on hold as policymakers analyse the effects of Trump\u2019s tariffs on growth and inflation. <\/p>\n<p>The US president\u2019s frequent attacks against Powell have revived speculation about Trump nominating his replacement early to serve as a \u201cshadow Fed chair\u201d that would guide markets on what to expect following Powell\u2019s departure next spring. <\/p>\n<p>\u201cA candidate who is perceived as being more open to lowering rates in line with President Trump\u2019s demands would reinforce the US dollar\u2019s current weakening trend,\u201d said MUFG senior currency analyst Lee Hardman.<\/p>\n<p>The euro gained as much as 0.7 per cent against the dollar to $1.174 \u2014 its strongest level since September 2021 \u2014 after Nato allies in Europe pledged on Wednesday to <a href=\"https:\/\/www.ft.com\/content\/b9109961-a05c-4052-9d6e-63b320e802a0\" data-trackable=\"link\">raise defence spending<\/a> to 5 per cent of GDP by 2035. The pound rose as much as 0.7 per cent to $1.376.<\/p>\n<p>\u201cThe possibility of an early Fed chair announcement is one of the factors pushing the dollar lower today,\u201d said Richard Yetsenga, chief economist and head of research at ANZ<\/p>\n<p>\u201cOn the European side, the confirmation of higher fiscal spending, in this case around defence, is also giving the euro a boost,\u201d he added.<\/p>\n<div class=\"n-content-layout\" data-component=\"flourish\" data-component-id=\"23948902\" data-component-type=\"flourish-in-article\">\n<figure class=\"n-content-picture n-content-layout__container\"><a href=\"#23948902\"><picture data-asset-type=\"flourish\" data-flourish-id=\"23948902\" data-flourish-type=\"visualisation\">\n<div id=\"23948902\" class=\"cp-message o-message o-message--inform o-message--notice\" data-o-component=\"o-message\">\n<div class=\"o-message__container\">\n<div class=\"o-message__content\">\n<p class=\"o-message__content-main\">Some content could not load. Check your internet connection or browser settings.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><\/picture><\/a><\/figure>\n<\/div>\n<p>The dollar has weakened more than 10 per cent this year as the anticipated hit from the trade war and growing warnings about the sustainability of the US debt pile mix with concerns about Fed independence.<\/p>\n<p>\u201cThe broader backdrop remains one where the perception is the US economy is slowing more quickly than the rest of the world, and that\u2019s been contributing to investor allocation out of the US,\u201d said Yetsenga.<\/p>\n<p>Kelvin Lau, senior economist for greater China and Asia at Standard Chartered, said the possibility of an early nomination for the next Fed chair \u201chas led to the belief that the Fed could shift to an earlier\u201d interest rate cut, weighing on the dollar.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/b626ec0e-fd69-41cc-b231-1234f9834d7e\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington,&hellip;\n","protected":false},"author":5,"featured_media":32670,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-32669","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32669"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/32670"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}