To leave the Board of Directors of the Central Bank, he proposed to US Federal Bank President Jerome Powell, Minister of Finance of USA Scott Bessed after the end of the term of office as president in May 2026.
“Traditionally, the Fed president also leaves commander. There have been many discussions about a shadowy president of the Fed, confusing before his appointment, and I can tell you that I believe it would be a major confusion in the market to remain a former Fed president, “US Finance Minister Scott Besed said in an interview with Bloom.
Powell’s term as the Fed commander does not expire before January 2028, which enables him to remain in the Central Bank – and to participate in monetary policy – even after his term of office as President next May. Powell has repeatedly refused to answer questions about whether he could remain as a commander. This cautiousness has complicated decision -making for President Donald Trump and his assistants as they are looking for the Fed leadership next year.
“There is a formal process that has already begun” in identifying the candidate to become the next Fed president, Besed also said. “There are many good candidates inside and outside the federal bank.”
Asked if Trump asked Bessed to take over the position of Fed President, the head of the finance ministry said: “I am part of the decision -making process.” He noted that “it is a decision by President Trump and will move at his own speed”.
Inflation
State bonds retreated after Bessed’s statements, with two -year bond yields stood at a high meeting of 3.93%. The Bloomberg Dollar Spot Index has limited the losses and had a slight change at 8:25 am. in New York.
If Powell does not make it clear that he will empty his position on the Board of Directors, Trump has a planned gap to fill next year, with Governor Adriana Kugler reaching the end of his term in January. Bessed said last month that a possible timetable would bring the name of the Fed president to the surface in October or November, before the January opening to the Board of Directors.
Trump has made it clear that Powell’s successor wants to be someone who will favor the reduction of interest rates. He has repeatedly shaken the Fed president because he remains steady at interest rates since he took up his duties after reducing them last year. Central bank policymakers have said they are concerned that the president’s duties increases will push inflation and prefer to gather more information before they choose to continue interest rates.
The latest inflation measurement is expected on Tuesday morning, with the June Consumer Price Index. Bessent said he had not examined the announcement before his appearance at Bloomberg, but said that “I would not put a lot of emphasis on a number”. He pointed out the recent trend of inflation numbers showing that fears of “significant rise in price level” have not been confirmed.
Flap
“They had some great prediction errors and this can also be one,” the economy said, Besen said for the Fed. Even so, Bessed emphasized that Trump has said “many times that he is not going to dismiss Jay Powell”.
Former Fed Commander Kevin Wars and the current Director of Trump’s National Economic Council, Kevin Hasset, along with Bessed, are among the possible candidates for Powell’s succession to the presidency. Investors have also focused on today’s Fed Commander Christopher Waller, whom Trump appointed to the Board of Directors during his first term and who was open to the idea of reducing interest rates as early as this month.
Powell’s pressure increased further this month, with several Republicans attacking him to overcome the cost of renovating two Fed -controlled buildings. Some have used the issue to argue that it gives the President a legal cause for the dismissal of the head of the Fed.
Hasset, when asked on Sunday in an interview with ABC News if the president has the power to dismiss the Fed president, said: “This is an issue that is being considered. But surely, if there is a reason, it has.”
Bessed, asked about Hasset’s comments, again pointed out Trump’s comments that he was not seeking to dismiss Powell.