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Xiao Yanyan, Jin Shi Data
U.S. President Trump said on Tuesday he wanted to replace Federal Reserve Chairman Jerome Powell “right now” but“People around me are blocking it.”.When asked about plans to nominate a new Fed chair,Trump accused Powell of mishandling interest rate policy and admitted that he wanted to replace him immediately.
“I’d love to get rid of the current guy right away, but there’s always someone stopping me,” Trump said before meeting with Saudi Crown Prince Mohammed bin Salman at the White House.When talking about the candidate he personally nominated to run the central bank in 2017, he mercilessly rebuked:“This guy is a fool, a complete fool.”
Powell’s term as Fed chairman expires next May, and Trump is expected to announce his successor before the end of the year.According to federal law, Powell and other members of the Federal Reserve Board of Governors enjoy job security and cannot be dismissed unless there is sufficient “just cause.”Judicial practice generally defines “just cause” as serious dereliction of duty or gross negligence, rather than policy differences or personal grievances expressed by Trump.
Experts warn that given the special role the United States and the Federal Reserve play in maintaining the stability of the global financial system, forcibly removing Powell may trigger market panic.Still, Trump has threatened to fire dozens of times during his two terms in the White House.
Trump revealed on Tuesday that a personnel decision may have been made, but that he preferred Treasury Secretary Scott Bessent to take over.
“I do favor him, but he doesn’t want to take on this burden.” Trump said of Bessant, “You would rather stay in the Treasury, right?” The Treasury Secretary immediately responded: “Yes, sir.” Bessant promised Trump that he would interview the final candidate for the Fed position within a few weeks.
According to reports, Trump is choosing from five final candidates: Federal Reserve Vice Chairman Michelle Bowman, Federal Reserve Governor Christopher Waller, former Federal Reserve Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock Fixed Income Chief Investment Officer Rick Rieder.
Trump commented: “There are unexpected names on the list, and there are also well-received candidates. It’s okay to be politically correct from time to time, but we have to make sure the candidates are good enough.”
