Almost exactly eight years after President Donald Trump nominated Jerome Powell as Fed chief, it's again time for the president to choose a new head of the US central bank. According to information to CNBC, Donald Trump has a total of eleven names on his list of possible candidates.
If you want to be a little conspiratorial, you want people to vote for rate cuts, so an incentive may be that they think they are on the list, says Elisabeth Kopelman about the many names.
The two Kevins
Donald Trump himself has previously said that he has shortened the list significantly and then lifted Kevin Warsh and Kevin Hassett as possible candidates.
Kevin and Kevin, both Kevins, are very good, said the president at a press conference.
Kevin Warsh already has a position within the central bank, while Kevin Hassett would be an external nomination. Elisabeth Kopelman says that there are clearly stronger arguments for Kevin Warsh ahead of the other Kevin.
He has supported Donald Trump's line in several issues, but he is still considered a competent person. There are those who have a slightly more critical view of Kevin Hassett, says Elisabeth Kopelman.
Elisabeth Kopelman notes that Christopher Waller has also been among the favorites for a long time, but that it is natural for the list of possible candidates to have become longer. One of the names that has emerged recently among the speculations is Fed top Michelle Bowman.
It seems reasonable that she is rewarded with being on the list now that she has voted for cuts.
Discussed the job
Jim Bullard is also mentioned as a possible candidate after he stated that he met with Finance Minister Scott Bessent to discuss the job.
What is common to the possible candidates is that they to a high degree advocate a easier monetary policy with lower interest rates - so-called doves.
If you are not a dove, you are not on the list.
The choice of new Fed chief is slightly complicated by the fact that Jerome Powell has not yet announced whether he intends to leave the Fed's board when he leaves the chairmanship. He has the right to remain on the board until January 2028. If Trump is to nominate an external candidate, he must then give that person Stephen Miran's mandate, as it is the only one that expires in the near future.
But I would be very surprised if Powell stays. That's really not what you do, says Elisabeth Kopelman.
Within the central bank: Kevin Warsh, Michelle Bowman, Christopher Waller, Philip Jefferson, Lorie Logan, and Jim Bullard.
Outside the central bank: Kevin Hassett, Marc Sumerlin, David Zervos, Larry Lindsey, and Rick Rieder.
Source: CNBC
