Intel stock spikes after report of possible US government stake
Investing.com-- U.S. President Donald Trump may expedite his announcement of Federal Reserve Chair Jerome Powell’s successor, the Wall Street Journal reported on Wednesday, amid growing frustration with the central bank’s languid pace of interest rate cuts.
Trump has toyed with the idea of selecting and announcing Powell’s replacement by September or October, the WSJ report said, citing people familiar with the matter.
Trump’s ire towards Powell– which saw the president repeatedly criticize the Fed chair on social media while calling for immediate rate cuts– could prompt an even earlier announcement, potentially during summer.
Trump is considering former Fed governor Kevin Warsh and National Economic Council director Kevin Hassett, the WSJ report said. Other contenders include Treasury Secretary Scott Bessent, former World Bank President David Malpass, and Fed governor Christopher Waller.
Powell has largely disregarded calls to cut rates immediately, and has signaled that he will serve the remainder of his term, which ends in May 2026.
Trump’s announcement of Powell’s successor could come far earlier than the traditional three-to-four month transition period, and could be aimed at undermining Powell’s influence in markets.
Trump on Wednesday also hinted at being ready to pick Powell’s replacement soon, while criticizing the Fed Chair, who was appointed by Trump during his first term.
Powell largely reiterated his cautious stance during a testimony before Congress this week. The Fed chair has repeatedly warned that Trump’s trade tariffs have clouded the economic outlook and present inflationary risks, which are keeping the bank from acting further on interest rates.