{"id":34316,"date":"2025-07-15T16:10:39","date_gmt":"2025-07-15T16:10:39","guid":{"rendered":"https:\/\/financialrush.com\/?p=34316"},"modified":"2025-07-15T16:10:39","modified_gmt":"2025-07-15T16:10:39","slug":"trump-administration-has-begun-search-for-next-fed-chair","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=34316","title":{"rendered":"Trump administration has begun search for next Fed Chair"},"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=8732cf33-70e9-4fee-a2a7-836a935c6df0&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>A \u201cformal process\u201d to select the next chair of the US Federal Reserve has begun, according to Treasury secretary Scott Bessent, as the White House\u2019s frustration with the central bank\u2019s reluctance to cut interest rates grows.\u00a0<\/p>\n<p>Bessent said on Tuesday that a search was already under way to find a replacement for Jay Powell, whose term ends next May, even as he insisted that Donald Trump did not intend to fire the Fed chair.\u00a0<\/p>\n<p>\u201cThere\u2019s a formal process that\u2019s already starting,\u201d Bessent told Bloomberg Television. \u201cThere are a lot of great candidates. And we\u2019ll see how rapidly it progresses. It\u2019s President Trump\u2019s decision and it will move at his speed.\u201d<\/p>\n<p>The Treasury secretary\u2019s comments come as Trump piles pressure on Powell \u2014 who he described as a \u201cstubborn mule\u201d and \u201cnumbskull\u201d \u2014 to lower rates in order to reduce US debt payments. <\/p>\n<p>The Fed chair has said any decision to reduce borrowing costs will depend on economic data. Official figures released on Tuesday showed Trump\u2019s sweeping tariffs were putting upward pressure on prices, prompting traders to cut back bets on a near-term rate cut.<\/p>\n<p>Powell is due to stand down as Fed chair in May 2026, but he can stay on as a governor at the central bank until 2028.\u00a0<\/p>\n<p>Bessent suggested that Powell should leave the board altogether, warning that not doing so could lead to \u201cconfusion\u201d in markets.\u00a0<\/p>\n<p>\u201cTraditionally the Fed chair also steps down as governor,\u201d he said. <\/p>\n<p>\u201cThere\u2019s been a lot of talk of a shadow Fed chair causing confusion in advance of his or her nomination and I can tell you I think it would be very confusing for the market for a former Fed chair to stay on also.\u201d<\/p>\n<p>Trump\u2019s repeated attacks on Powell, and his insistence that he will only pick a new chair who cuts interest rates, has raised concerns on Wall Street over the central bank\u2019s continued independence.\u00a0<\/p>\n<p>\u201cThe independence of the Fed is absolutely critical \u2014 and not just for the current Fed chair, whom I respect, Jay Powell, but for the next Fed chair,\u201d said Jamie Dimon, JPMorgan chief executive, on Tuesday.\u00a0<\/p>\n<p>\u201cPlaying around with the Fed can often have adverse consequences, the absolute opposite of what you might be hoping for,\u201d he added.<\/p>\n<p>Kevin Hassett, director of the National Economic Council, who is seen as a contender to be the next Fed chair, said over the weekend that sacking Powell was \u201cbeing looked into\u201d.<\/p>\n<p>But Bessent insisted that Trump did not intend to fire Powell.\u00a0<\/p>\n<p>\u201cPresident Trump\u2019s said numerous times he is not going to fire Jay Powell,\u201d said Bessent, adding: \u201cI think an independent central bank is very important for the conduct of monetary policy.\u201d<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/8732cf33-70e9-4fee-a2a7-836a935c6df0\">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":34317,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-34316","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\/34316","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=34316"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/34316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/34317"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}