U.S. President Donald Trump has commented on his potential pick to replace Fed Chair Jerome Powell, whose term ends next year. Crypto traders are currently betting on National Economic Adviser Kevin Hassett to become the next chair, with a 47% chance of this happening.
Trump Comments On Potential Pick For Fed Chair Role
During a bilateral meeting with the Crown Prince of Saudi Arabia, the U.S. president stated that he thinks he already knows his choice for the Fed chair role. This came as he revealed that he has started interviewing candidates for the position.
Trump also stated that he would love to fire Jerome Powell right now, but that he is being held back from doing so. The U.S. president has notably criticized Powell throughout the year for his refusal to lower interest rates earlier. However, the committee has since made two rate cuts at the September and October FOMC meetings.
Trump commented on this, stating that they have blown past “Powell’s interest rate stupidity.” The Fed Chair’s tenure ends in May next year, though the president can announce Powell’s replacement at any time from now.
The president is likely to name Powell’s replacement as a Fed governor to take over from Stephen Miran, whose term ends in January, after which the potential pick will then take over from Powell in May 2026, when Powell’s term as chair ends.
CoinGape had reported that U.S. Treasury Secretary Scott Bessent had shortlisted five candidates to become the next Fed chair. They include Fed Governors Christopher Waller and Michelle Bowman, Kevin Warsh, Kevin Hassett, and BlackRock’s CIO Rick Rieder.
Hassett The Frontrunner For The Role
Polymarket data shows that Kevin Hassett is currently the frontrunner to become the next Fed chair. There is currently a 47% that Trump will nominate him for the position. Meanwhile, there is a 21% chance that Waller will get the nod, and an 11.6% and 11% chance for Rieder and Warsh, respectively.
Source: PolymarketHassett already indicated his willingness to take up the role, stating that he will accept it if Trump offers him the position. He also highlighted his Fed experience, having spent five years working at the U.S. central bank.
Meanwhile, the National Economic Council Director is in favor of a larger interest rate cut at the December FOMC meeting. However, he expects the Fed to lower rates by only 25 basis points (bps). As CoinGape reported, a rate cut next month is still far from certain, as some Fed officials have cautioned against further cuts amid rising inflation.
Source: https://coingape.com/donald-trump-says-he-has-his-pick-to-replace-fed-chair-jerome-powell/
