President Trump said at a cabinet meeting: The current Federal Reserve Chair is a stubborn bull, he doesn't like me... He's incompetent, he won't cut interest rates... He will announce the new chairperson in early next year... He wants (Treasury Secretary) Bessent to take it, but he refuses...
The remarks made by Trump at a recent cabinet meeting mainly revolved around his dissatisfaction with the Federal Reserve Chair Powell and considerations for future personnel arrangements.
Trump has long had policy differences and personal conflicts with Federal Reserve Chair Powell. Trump hopes to cut interest rates to boost the economy and reduce government borrowing costs, but Powell-led Fed insists on making independent decisions based on economic data such as inflation and employment. Trump frequently publicly criticized Powell as "stubborn," "incompetent," even calling him "the worst Federal Reserve Chair in history."
Powell's term will end in May 2026. Trump plans to announce the nominee earlier, which aligns with the strategy proposed by his Treasury Secretary Bessent of establishing a "shadow Federal Reserve Chair," aiming to guide market expectations early and weaken the influence of the current chair.
Although Bessent is not interested in this, the selection process for the Federal Reserve Chair has been ongoing. Currently, Kevin Hassett, the White House National Economic Council Director, is widely considered the most likely candidate, closely related to Trump, seen as a "close ally."
It meets Trump's core requirement of "loyalty"; holds a Ph.D. in economics and has experience working at the Federal Reserve.
If Hassett becomes the Federal Reserve Chair, he would implement his一贯 advocated low-interest, high-liquidity, high-growth strategy.
Original: toutiao.com/article/1850432583188480/
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