Few positions hold as much sway over financial markets and the global economy as the chair of the US Federal Reserve. The words of the Fed chair can move markets and influence billions of dollars. President Donald Trump has even considered taking on the role himself.
Trump's dissatisfaction with Fed Chair Jerome Powell is well documented; he has suggested firing Powell, criticized him for not lowering interest rates, and urged the Fed's Board of Governors to remove him. Now, Trump has the opportunity to appoint a replacement, and he's making the most of it.
Trump is anticipated to announce his nominee as early as December, which would mark the earliest a president has done so before the incumbent's term ends.
This could lead to a situation where conflicting narratives about the US economy emerge, one from Powell and another from Trump’s nominee, effectively creating a “shadow Fed chair.”
Treasury Secretary Scott Bessent, who is overseeing the selection process, mentioned that he interviewed around a dozen candidates around Labor Day but has since narrowed the list to five individuals from various backgrounds, including the White House, the Fed, and the private sector.
Deliberations are ongoing, and the ultimate decision rests with Trump. The chosen nominee will need Senate confirmation and will lead the Fed as it addresses the challenges posed by the administration's economic policies, which have raised concerns about inflation and economic growth.