According to White House insiders, Donald Trump could jump the gun and nominate his choice to replace Federal Reserve Chairman Jerome Powell months earlier than is traditional which could have a huge impact on financial markets and proposed interest rate changes.
In an exclusive report from the Wall Street Journal, the president already has his eye on several candidates and could make an announcement at any time, almost 11 months before Powell's term is up.
Among those candidates, the Journal is reporting, former Fed governor Kevin Wars, Trump adviser and frequent cable news guest Kevin Hassett and Treasury Secretary Scott Bessent are names that are being floated.
As the report notes, previous nominations have been announced three to four months prior to an expiration of a term, and an early announcement could be disruptive to the Fed's work.
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Should Trump make an early move, any pronouncements from Powell could be undercut by the incoming chair who will likely parrot whatever the president wants them to say.
According to the Journal's Brian Schwartz and Nick Timiraos, "An early announcement could allow the chair-in-waiting to influence investor expectations about the likely path for rates, like a backseat driver, attempting to steer monetary policy before Powell’s term ends."
Although Bessent has gone on record stating that no announcement would be forthcoming until September, the president appears to have other plans, according to some.
“I know within three or four people who all I’m going to pick,” he told reporters on Wednesday at the NATO summit. “He [Powell] goes out pretty soon, fortunately, because I think he’s terrible.”
You can read more here.
