“I will make that decision before the end of the week,” Trump said about the candidate to occupy the vacancy position he left Adriana Kuglerwho resigned last week unexpectedly to return to his academic position at the University of Georgetown. Kugler, who held the position since 2023, presented his resignation with an immediate effect as of this Friday, citing his intention to return to the University of Georgetown.
Trump’s decision has a double relevance: on the one hand, You must nominate someone to complete Kugler’s mandatewho expires in January 2026; on the other, the president left open the possibility that That same person is his future chosen to lead the Federal Reserve, in replacement of Jerome Powell, whose mandate as president concludes in May next year.
“Many say that if you are going to name someone now, it should be the one who leads the Fed later. That is also a possibility,” Trump said in an interview with CNBC, insinuating that he is looking for an ordered transition with a figure that already participates in the next monetary policy decisions.
What are the names in dance
Among the names listed in the “short list” of the president are two figures close to his economic line of thought: Kevin Hasettcurrent economic advisor of the White House and former director of the Council of Economic Advisors, and Kevin Warshformer governor of the Fed during the Bush Administration. Both have expressed their support for a lower interest rates policy, in line with the vision that Trump defends.
The president also confirmed that Scott Besentcurrent secretary of the Treasury and one of the men closest to his economic team, rejected the possibility of holding the position. “He told me he wants to stay where he is. He likes what he does, and is doing a great job,” Trump said.
Although he avoided giving the remaining names, US media point out that one of the other candidates is Christopher Wallercurrent member of the Fed Board of Directors and one of the two officials who openly opposed the current rate maintenance policy, together with the supervision vice president, Michelle Bowman.
The political and economic background
From his return to the presidency in January, Trump was critical of Powell’s role at the head of the Fed, Considering that the Central Bank did not act quickly to reduce interest rates against an economy that shows deceleration signals. However, Inflation still remains above 2% that the Fed considers appropriatewhich has generated a complex double mandate situation: price stability and full employment.
The nomination of the new governor must be confirmed by the Senate, which could open a new front of political debate. In addition, Powell’s eventual successor will require another independent vote in the Upper House.
Meanwhile, from the business environment the possible candidates began to move. As it transpired, James FishbackCEO of the investment firm Azoria and exassor in government efficiency issues, would have formally expressed interest in occupying the vacancy, although the White House has not officially confirmed contacts in that regard.
The election of who will integrate the Federal Reserve Council not only will determine the internal composition of the organism in the short term, but could directly influence the US monetary policy turn Towards a more expansive posture. In a global context of high financial sensitivity, this definition does not go unnoticed in the markets.
Source: Ambito
