Powell Remains on Board, Trump Focuses on Securing Warsh
US President Donald Trump said he has no problem with Jerome “Jay” Powell remaining as Federal Reserve chairman after his term as chairman ends on May 15. Trump emphasized his priority is ensuring Kevin Warsh—his preferred candidate—becomes Fed chairman, following Powell’s statement that he will remain on the Board of Governors for an undetermined term.
Warsh is now on track for a full Senate vote after the Senate Banking Committee passed the nomination in a fully partisan 13–11 vote. However, Powell’s continued tenure on the board could potentially limit Trump’s ability to quickly add new seats for candidates aligned with the White House’s push for faster and more aggressive interest rate cuts.
Trump also said he expected Powell to stay and renewed his criticism of Powell, calling him a “negative force.” Markets will be watching to see whether the board’s configuration after the chairman change changes the direction of policy communication, especially amid inflationary pressures and debate over when interest rate easing could be considered again. (Arl)
Source: Newsmaker.id