Wall Street Watches as Fed Search Kicks Off
Traders say if Trump picks Powell’s replacement soon, it could lead to a “Shadow Fed.”
The race to be the next Fed chair is underway. Days after Trump again criticized Powell and said he would name a successor “very soon,” our colleagues in Washington reported on the possible successors, including Bessent.
Other runners include:
A senior administration official, who spoke on the condition of anonymity, disputed the reporting without providing further specifics.
Powell’s term actually doesn’t end until next May and he shows no sign of stepping down early despite Trump’s broadsides. While markets always care who sets monetary policy in the world’s biggest economy, there is extra intrigue this time given the suspicion that Trump’s nominee will also likely favor low interest rates, despite the risk of faster inflation.