Today 19:34
US President Donald Trump said on Sunday that he has decided who he will name as the new head of the Federal Reserve (the US central bank), after making it clear that he expects his nominee. Pressure to lower interest rates Of interest.
Trump told reporters on Air Force One returning to Washington: “I know who I will choose, yes,” without revealing his choice. “We will announce it”.
Trump has often criticized current Fed Chairman Jerome Powell for not lowering interest rates quickly and has indicated that he wants a president who will push harder for cuts. People familiar with the matter told Bloomberg News last week that White House National Economic Council Director Kevin Hassett, Trump’s chief economic adviser, considered… Most likely candidate To succeed Powell.
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Hassett, speaking Sunday on CBS’ “Face the Nation,” avoided saying whether he considered himself the favorite to replace Powell, calling the report a “rumor.” However, it highlighted the market’s positive reaction to the news that Trump would be… His election announcement is coming soona subtle response to concerns that investors view him as too closely aligned with the president.
“We had a big auction of Treasuries, interest rates went down, and I think the American people can expect President Trump to pick someone to help them get loans for them,” he added. Cheaper cars and easier access to mortgages “At a lower price. That’s what we saw in the market’s reaction to the rumors about me,” Hassett told CBS.
Trump trusts Hassett and sees him as consistent with his desire to push for more aggressive interest rate cuts at the central bank, according to people familiar with the matter. Hassett said he would accept the position if it was offered to him, despite analysts warning against it You may find it difficult to unite the committee The person responsible for setting prices is more vulnerable to pressure than Trump. His focus on market reaction was a virtual dismissal of these concerns.
Although Trump is known for his last-minute changes, the prospect of Hassett running for office sent the yield on the 10-year Treasury note tumbling. Temporarily dropped below 4%.
Treasury Secretary Scott Besent, who oversaw the selection process, said last week that Trump could Announce your candidacy before the holiday Christmas is on December 25th.
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Besides Hassett, the finalists include Fed Governors Christopher Waller and Michael Bowman, former Governor Kevin Warsh, and BlackRock’s Rick Reeder. Trump often says that, too He would like Bessent to head the FedIt is an idea that Besant has repeatedly rejected.
Whoever Trump chooses will need to be confirmed by the Senate as president, and would likely serve as Fed governor for 14 years starting in February if an outsider is chosen. state Powell expires as president in May.
JZ.