President Donald Trump told CNBC on Tuesday that he narrowed down the future Federal Reserve chair area to four candidates.
The president refused to reveal who was fighting, but he revealed that Bescent, previously considered a major candidate, has come out of the fight for himself.
“Well, I love Scott, but he wants to stay where he is,” Trump said in a “Scokebox” interview. “I asked him last night, ‘Is this what you want?’ (Bescent said),’ “I want to stay where I am. It’s a great honor.
The news follows the surprise announcement of Fed Gov. Adriana Coogler on Friday that she had resigned this Friday. The move will allow Trump to set up another appointee for the Fed president while the White House is actively pushing central banks to lower interest rates.
Among the candidates that may remain are former governors Kevin Wahsh and Kevin Hassett, directors of the National Economic Council and leading Trump advisors. Both advocate low prices.
“Both Kevins are very good, and some others are very good,” Trump said, adding that Kugler’s resignation was “a pleasant surprise.”
Jerome Powell’s current term of office ends in May 2026. He is a frequent target of Trump’s criticism and is speculated to name the “shadow chair” that could help the president undermine Powell until his term ends. Trump did not promise to take that approach, but admitted it was a “possibility.”
During his first term as president, Trump nominated Powell for his job with the Fed in 2017. The Senate then confirmed Powell the following February. Trump claimed Powell told him Tuesday.
The Fed voted last week to stabilize benchmark interest rates in the 4.25%-4.5% range. The market expects the Fed to approve the next cut in September. The central bank has reduced the September-December 2024 policy rate to full percentage points, driving the move that Trump said was politically motivated to help Democratic presidential candidate Kamala Harris.
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