Trump nears Fed chair selection after completing interviews

The President of the United States, Donald Trump, confirmed the completion of the candidate interview stage for those set to assume Jerome Powell’s role as Chair of the US Federal Reserve upon his term ending in May. Trump asserted that the Fed chair position is already reserved for a particular person who, according to him, has the required skills to fulfill this role.

His statement sparked heated debates among individuals, as many demanded to know who the preferred candidate was. Responding to this controversy, Trump declared, “I’ll let you know soon. I have someone I believe will do a great job, but I’m not going to disclose who it is.” Based on his argument, “This person is very respected, well-known, and I think they will perform excellently.”

On the other hand, reports from reliable sources noted that some of the ideal candidates Trump earlier claimed to be perfect for this position included the Director of the National Economic Council of the United States, Kevin Hassett, BlackRock’s senior managing director, Rick Rieder, a Member of the Federal Reserve Board of Governors of the United States, Christopher Waller, and a Former Member of the Federal Reserve Board of Governors of the United States, Kevin Warsh.

Trump affirms having the best fit for the Fed chair position once Powell’s term ends 

Concerning Kevin Hassett, sources with knowledge of the situation mentioned that Trump recently affirmed that he is an ideal candidate for the Fed chair role. However, after several considerations, the president now appears likely to retain him in his position at the White House.

These sources sought to explain the sudden shift in decision-making, noting that Trump quietly expressed dissatisfaction with his choices. Meanwhile, it is worth noting that Trump has openly condemned Powell, frequently saying that the Fed chair was too slow to implement rate cuts. With the new Fed chair, the US president alleged that this approach will come to an end.

During an interview on Wednesday, January 21, Trump provided unclear details about the number of candidates still under consideration for the role.

Nonetheless, the United States Secretary of the Treasury, Scott Bessent, who was assigned to manage the selection process, disclosed that there are four candidates on the shortlist. Moreover, Scott projected that Trump might reveal his preferred choice before the end of this month.

In a statement released on Wednesday this week, the president mentioned that, “I’d say we’re down to three candidates, but really it’s more like two. In my mind, we might have one.”

Trump expresses disapproval of Powell’s role as the Fed chair 

The Trump administration accelerated its efforts to undermine Powell earlier this month. In this move, the administration issued subpoenas indicating a potential criminal investigation into the Federal Reserve’s renovations of its Washington-based headquarters.

Responding to these claims, Powell described this investigation as an attempt to get back at him for refusing to reduce interest rates swiftly enough. In the meantime, sources confirmed that the Fed chair can continue to serve on the Fed board until 2028, even if his term terminates in May.

However, the potential legal battle has fueled speculation that Powell may choose to stay even after his term as Fed chair concludes.

This speculation drew the attention of reporters who asked Trump whether news that Powell might decide to stay at the Fed worried him. In response, Trump stressed that he was not bothered, adding that he will wait to see what unfolds. Still, the president insisted that Powell is slow to make decisions, even as interest rates are dropping.