Trump Plans to First Establish a "Shadow Fed Chair"

According to ChainCatcher, citing a report from The Wall Street Journal, Trump has grown increasingly dissatisfied with the Federal Reserve’s reluctance to cut interest rates, prompting him to consider announcing his pick for the next Fed chair ahead of schedule. Currently, incumbent Chair Jerome Powell has 11 months left in his term. Sources familiar with the matter revealed that in recent weeks, Trump has been weighing whether to select and announce Powell’s successor as early as September or October this year. Trump’s dissatisfaction with Powell could even lead him to make this decision earlier in the summer. Candidates under consideration include former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett.

In addition, Treasury Secretary Bessent has also been recommended as a potential candidate by supporters of both men. Other possible nominees include former World Bank President David Malpass and current Fed governor Christopher Waller. Since the new Fed chair would not officially take office until May next year, announcing the pick this summer or fall would be much earlier than the usual three- to four-month transition period. This early announcement could allow the nominee to influence market expectations for the future path of interest rates in advance.