US Treasury Secretary: No Rush to Name Powell's Successor
The US Treasury Secretary stated that the administration is in no hurry to determine who will succeed Jerome Powell as Chairman of the Federal Reserve (the US central bank), noting that the list includes many prominent names from within and outside the board.
In a television interview, the Secretary stated that there are "many excellent candidates, including members of the Federal Reserve Board, and perhaps presidents of regional Federal Reserve banks." However, he declined to mention specific names.
Potential Candidates for Fed Chair
Several names have been circulating in the media as potential candidates, including the Secretary himself, the director of the National Economic Council, Kevin Hassett, former Federal Reserve Board member, Kevin Warsh, and current member, Christopher Waller. The Secretary described the list as "very long."
The Secretary affirmed that "work is underway" to select the candidate, and that the final decision rests with the US President. The potential successor is expected to be announced in December or January.
Criticism of the Fed's Assessment of Tariff Impact
The Treasury Secretary reiterated his criticism of the Federal Reserve officials' analysis of the impact of tariffs, describing it as "somewhat biased." He pointed out that manufacturers bear the brunt of the costs of rising tariffs, and that many retailers have been generating significant profits during the COVID-19 pandemic.
Calls for Powell's Resignation
The Secretary expressed "surprise" at Mohamed El-Erian's, former CEO of PIMCO, call for Powell's resignation. El-Erian stated that if Powell's goal is to maintain the independence of the Federal Reserve, he should resign.
The Secretary called for an internal review of the Federal Reserve's operations, or even an external review, to ensure that the expansion of the bank's functions does not threaten its monetary policy independence. He emphasized that continuous communication with the Federal Reserve Chairman continues as usual.
Potential Economic Implications
The appointment of a new Federal Reserve Chairman is a significant economic event, as it affects the monetary policy of the United States, and thus the global economy. Investors and analysts should closely monitor developments in this regard, keeping in mind that the selection of the new chairman may lead to changes in interest rates, inflation, and economic growth.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Any investment decisions should be made after consulting with a qualified financial advisor.
