"All Candidates Would Be Excellent Choices"
President Donald Trump of the United States stated on December 18 (local time) that he is currently interviewing three to four candidates for the next chair of the Federal Reserve (Fed) and will make a decision soon.
After signing an executive order at the White House to ease marijuana regulations, President Trump met with reporters and said, "I believe all the candidates would be excellent choices," making the above remarks.
He refrained from confirming whether he would announce the next Fed chair nominee before the end of the year but explained, "A decision will be made in the next few weeks."
The current term of Jerome Powell, the Fed chair, expires in May 2026. As a result, President Trump, who has consistently emphasized the need for interest rate cuts, is expected to use the selection of the next Fed chair to push for a more dovish monetary policy stance.
He stressed that the next Fed chair should pursue more aggressive interest rate cuts to lower mortgage costs. However, he did not specify who he considered the most suitable candidate.
Earlier this month, President Trump said he had "a pretty clear idea," which led to speculation that he may have already made a decision. However, on this day, rather than naming a specific individual, he continued to publicly praise several candidates. Initially, Kevin Hassett, chair of the White House National Economic Council (NEC), was considered a strong candidate, but there have been reports that some aides are concerned his close relationship with President Trump could undermine the independence of monetary policy and erode market confidence.
When asked about Fed Governor Christopher Waller, President Trump replied, "I met him again on Wednesday (the 17th)" and described him as "an excellent person." He added, "He has been in that position for a long time." He also praised Fed Vice Chair Michelle Bowman but did not mention whether she was included in the final group of candidates.
Previously, in an interview with The Wall Street Journal (WSJ) published on the 12th, President Trump named Chairman Hassett and former Fed Governor Kevin Warsh as strong candidates. At that time, he said, "Both Kevins are excellent," adding, "There are a few other outstanding individuals as well." In the same interview, he also argued that the Fed should lower the benchmark interest rate to below 1% within a year.
Meanwhile, on December 10, the Fed lowered its benchmark interest rate to an annual 3.5-3.75%. This marked the third consecutive rate cut following those in September and October. Of the 12 voting members of the Federal Open Market Committee (FOMC), three voted against the decision-the first time in six years, since September 2019, that there have been three dissenting votes. Analysts say this reflects widening differences within the Fed regarding the priorities of monetary policy, as the economy faces both slowing employment and persistent inflation.
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