Trump said "I already know my Fed chair nominee," Behnken: likely to announce before Christmas.

Written by: He Hao, Zhao Ying

Source: Wall Street Watch

On Tuesday local time, U.S. President Trump stated that he believes he has chosen the next Federal Reserve Chairman, while claiming that someone is preventing him from firing the current Fed Chairman Powell. Trump told reporters in the Oval Office, “I think I know who I would choose.” However, he did not disclose who it is. “I really want to replace the current person right away, but someone is preventing me from doing so.”

U.S. Treasury Secretary Scott Bessenet, who is responsible for the selection process, stated that he has narrowed the candidate pool to the following individuals:

Current Federal Reserve Governors Christopher Waller and Michelle Bowman, former Federal Reserve Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock executive Rick Rieder.

Trump said: “We have some surprising names, as well as some conventional candidates that everyone is discussing. We may take the conventional route. It's also nice to occasionally go down the politically correct path.”

Bescent stated that he plans to submit a proposal to Trump after the Thanksgiving holiday and hopes to make a decision by Christmas. Trump has openly discussed this decision and praised some candidates on the list, but has remained vague about whether he leans towards any particular candidate.

Bescent said:

We are initiating a new and exciting round of interviews. After that, some officials from the White House will conduct interviews, possibly right after Thanksgiving. In mid-December, the President will meet with the final three candidates, hoping to make a decision before Christmas.

Trump reiterated that he hopes Becerra will become the chairman of the Federal Reserve, but the Treasury Secretary is too fond of his current role in the government and is unwilling to leave. Becerra stated, “I can say for sure that I will not be the chairman of the Federal Reserve.”

The new chairman will replace the current Federal Reserve Chairman Powell. Trump has repeatedly criticized Powell, believing that he is lowering interest rates too slowly. Powell's term as Federal Reserve Chairman will end in May next year, but his term as a Federal Reserve Governor will not end until 2028.

The next chair of the Federal Reserve is likely to be appointed to a 14-year term on the Federal Reserve Board starting February 1 next year. The position that will be vacated is currently held by Stephen Miran, who is on unpaid leave from the White House Council of Economic Advisers.

The market generally believes that the next chairman of the Federal Reserve will have to carefully balance satisfying Trump's demand for lower interest rates with maintaining investor confidence.