Who will be the next US Federal Reserve chair?
What's the story
The search for a new chairperson of the US Federal Reserve is nearing its conclusion, with President Donald Trump likely to announce his pick in the coming weeks. Jerome Powell's term as Fed chairman ends in May. However, he is not required to leave his position on the Washington-based Board of Governors until 2028, aacording to Reuters.
Investigation details
Powell under criminal investigation
The high-stakes search for Powell's successor comes amid a criminal investigation into his June testimony before Congress. The inquiry is focused on the costs of a Federal Reserve building renovation and has been publicly denounced by Powell as politically motivated pressure due to the Fed's refusal to cut interest rates.
Potential candidates
Frontrunners to replace Powell
The nominee chosen by Trump will be sent to the Senate for confirmation. The frontrunners include Kevin Hassett, White House National Economic Director and a long-time conservative economist, Kevin Warsh, a former Fed official who served as a governor from 2006 to 2011, and Christopher Waller, the current Fed governor nominated by Trump in 2020. Rick Rieder, an executive at BlackRock with extensive Wall Street experience, is also on the list.
Future hurdles
Challenges for the next Fed chair
The next Fed chair will have to navigate a difficult landscape, with political pressure and internal disagreement over interest rate decisions. Trump has made it clear that he wants lower borrowing costs, putting extreme pressure on the Fed's independence. Some economists and market participants fear that political interference in these decisions could blur the line between political aims and central bank policy.