The struggle for independence and interest cuts.. Trump sets his conditions for succeeding Powell at the Fed
US President Donald Trump said "Listen to him"It is a condition that must be met by the person who will assume leadership of The Federal Reserve Bank succeeds its current Chairman, Jerome Powell, whose term ends next May.
The Trump administration is currently studying candidates to lead the central bank amid an unprecedented campaign by the White House to exercise control over the financial institution that has long been known for its complete independence from political decisions.
Trump explained in an interview with a newspaper "Wall Street Journal"on Friday, announced that both former Federal Reserve Board member Kevin Warsh and his former advisor Kevin Hassett are currently at the top of his list to head the central bank.
Who will succeed Powell?
Scheduled to terminate Jerome Powell, the current Chairman of the Federal Reserve, ends his 8-year term next May. He has repeatedly rejected Trump’s demands to lower interest rates, prompting the president to launch a series of public criticisms against him.
When asked where he wants interest rates to be a year from now, the president responded: "1% and perhaps less than that"adding that lower interest rates will reduce the cost of servicing domestic debt.
Trump is also considering appointing his advisor Kevin Hassett, who heads the National Economic Council, as a potential candidate to head the central bank.
Trump explained in the interview with "Wall Street Journal" That warsh "He believes interest rates should be lowered"This is consistent with the views he himself expressed months ago.
Trump added: "I don’t mean that he has to do exactly what he is told. But of course I am an intelligent voice and one that should be listened to"
Forecast markets witnessed movements following the report. "Wall Street Journal"After Hassett’s nomination rate was about 71%, this percentage dropped to 62%, while Warsh’s nomination rate reached 36%.
Other candidates whose nominations were considered included the current governors of the Federal Reserve, Christopher Waller and Michael Bowman, in addition to Rick Rieder, who runs the fixed income division at the giant money management company BlackRock.
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