Who will be the next Grand Manitou in American monetary policy? While Donald Trump has publicly repudiated the current president of the Reserve de Dederal (Fed), Jerome Powell, regularly treating it with “jerk” and “loser” because he refuses to reduce interest rates too fast. And if the US president cannot convert the head of the US Central Bank (although he threatens to say goodbye), he is already thinking about a successor.
In fact, Jerome Powell’s mandate expires in May 2026. To happen, Scott Besent, the Treasury Secretary, selected 11 candidates for several profiles, both experienced bankers and Wall Street figures, reports Financial Times on Thursday, August 14.
Among the estimated candidates as the most likely to happen to Jerome Powell, in office since February 2018, we found the current president of the National Economic Council Kevin Hassett, former Fed Governor Kevin Warsh, as well as Christopher Waller, one of the current governors.
A very political appointment
It is less likely that other more atypical profiles are selected, but they are also mentioned: David Zervos, Market Stratege Chief of Jefferies, former governor of the Fed and president of the National Economic Council, Larry Lindsey, the director of Obligations of Blackrock, Rick Rieder, the president of the Fed of Dallas Lorie Logan, former president of the Fed of the Fed of the Fed of Saint-Louis Bullard, former economic advisor, former W. Sumerlin, or current Vice Presidents of the Fed Michelle Bowman and Philip Jefferson.
Michelle Bowman, appointed by Donald Trump in his first term, as well as Jerome Powell, is more expert in bank supervision than in monetary policy, but supported the fall in the interest rate requested by the US president, who could play in his favor. On the other hand, Philip Jefferson, although with more experience in economics, is unlikely to be chosen, because he was appointed by Donald Trump’s predecessor, Joe Biden.
The former president of the Fed of Saint-Louis, James Bullard also took a position in favor of a fall in the rapid interest rates, despite the risk of a very strong drop in interest rates to function with US and global inflation, which could also give him the opportunity to be chosen by Donald Trump.
Source: BFM TV
