President Donald Trump's frustration with the Federal Reserve Board's decision to maintain the status quo with its benchmark interest rate is leading him to accelerate the timeline for announcing a replacement for Jerome Powell, whose term as the board's chair ends in May.
Trump in recent weeks has toyed with the idea of selecting and announcing Powell's replacement by September or October, The Wall Street Journal reported Wednesday, citing people familiar with the matter. One of those people said the president's frustration with Powell could prompt an earlier announcement sometime this summer.
Trump has repeatedly urged Powell to cut interest rates. Ahead of Powell's testimony this week in front of House and Senate committees, he reportedly said he hopes lawmakers work "this very dumb, hardheaded person over" and insisted the U.S. would save billions of dollars if the interest rate were 2 to 3 points lower that its current 4.25% to 4.5% rate.
Because the new chair wouldn't take office until May, announcing Powell's replacement this summer or fall would be far earlier than the traditional three-to-four-month transition period, the Journal reported. An early announcement could allow the chair-in-waiting to influence investor expectations about the likely path for rates, attempting to steer monetary policy before Powell's term ends.
When asked if Trump was entertaining an earlier announcement, the White House said the Fed should pursue a growth-oriented monetary policy.
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"The administration is now laying the groundwork — including with the one, big, beautiful bill — to turbocharge economic, job, and investment growth, and it's high time for monetary policy to complement this agenda and support America's economic resurgence," White House spokesman Kush Desai told the Journal.
Trump is considering former Fed Gov. Kevin Warsh and National Economic Council Director Kevin Hassett as Powell's replacement, the Journal reported, citing people familiar with the matter.
Treasury Secretary Scott Bessent is being pitched to Trump by allies of both as a potential candidate, some of those people told the Journal. Other contenders include former World Bank President David Malpass and Fed Gov. Christopher Waller.
Newsmax reached out to the White House for comment.
Powell told the House Financial Services Committee on Tuesday that interest rates likely would have been lowered had it not been for Trump's tariff policies stoking uncertainty about inflation.
"Policy changes continue to evolve, and their effects on the economy remain uncertain," said Powell according to a transcript of his opening statement at the hearing.
"The effects of tariffs will depend, among other things, on their ultimate level.
"Expectations of that level, and thus of the related economic effects, reached a peak in April and have since declined. Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity."
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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