After the NATO Summit: "Fortunately, He Will Be Gone Soon"
Powell Says "No Need to Hurry," Dismissing July Rate Cut Speculation
US President Donald Trump announced on June 25 (local time) that he has narrowed down the list of candidates to succeed Jerome Powell, the Chair of the Federal Reserve (Fed), with whom he has had sharp conflicts over interest rate cuts, to three or four people.
At a press conference held after the North Atlantic Treaty Organization (NATO) summit in The Hague, Netherlands, President Trump responded to a question about his plans to replace Chair Powell, saying, "I think he is terrible. Fortunately, he will be gone soon."
Powell's term as Fed Chair runs until May 2026. President Trump did not mention the candidates for the next Fed Chair or the timing of the decision.
Earlier this month, President Trump stated that he would "soon" announce the next Fed Chair. Analysts interpreted this as an attempt to accelerate Powell's lame-duck period by appointing a "shadow Fed Chair" more in line with his own preferences.
The pool of potential candidates for the next Fed Chair reportedly includes US Treasury Secretary Scott Besant and former Fed Governor Kevin Warsh. Warsh, who was considered for the position of Treasury Secretary at the beginning of Trump's second administration, was described by President Trump as "a very highly regarded individual."
Since his candidacy, President Trump has repeatedly demanded interest rate cuts from Chair Powell, and after taking office, has criticized him using terms such as "idiot" and "the man who is always too late." On this day as well, he harshly criticized Powell, calling him "a very stupid and political person."
Despite this pressure, the Fed maintained its benchmark interest rate at 4.25% to 4.5% per year at the Federal Open Market Committee (FOMC) meeting held on June 18. The Fed has continued this freeze policy throughout Trump's presidency.
Chair Powell also reaffirmed his stance that he would not rush to cut rates until the impact of tariffs on the economy becomes clear. Appearing before the US House of Representatives the previous day, he was asked about the possibility of a rate cut in July and responded, "If inflationary pressures continue to be contained, we could resume rate cuts," but added, "I don't want to single out any particular meeting. The economy remains strong, so there is no need to hurry." He specifically mentioned that tariffs imposed from June to August could have a significant impact on prices and the economy, drawing a clear line against calls for a July rate cut.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
