Tensions continue between US President Donald Trump and Fed Chairman Jerome Powell over interest rates.
While Powell prefers to act cautiously regarding interest rate cuts due to tariffs, Trump argues that inflation is in good shape and that interest rate cuts should begin.
At this point, Trump, who has frequently called for Powell’s resignation, has already begun work on the new FED chair, who will come when Powell’s term expires in 2026.
US Treasury Secretary Scott Bessent announced last week that Trump had begun discussions with potential candidates for the new Fed chair.
While everyone is eagerly waiting to see who the new FED Chair will be, Trump said it could be announced soon.
Speaking to CNBC, Donald Trump stated that he was negative about Powell’s re-nomination, saying:
“The next Fed chair is one of four, and I plan to make an announcement soon.
Chairman Powell is a very political figure.”
At this point, Trump said several strong candidates for the Fed Chair were being considered, including Christopher Waller and Kevin Hassett.
Trump stated that he liked Treasury Secretary Scott Bessent, but that Bessent wanted to stay at the Treasury Department, saying, “I asked him, ‘Do you want to be Fed chairman?’ He said, ‘No, I want to work with you. I want to stay with you,’ and he resigned. He wants to keep his current position.”
*This is not investment advice.