U.S. Treasury Secretary Janet Yellen: Not in a hurry to select a successor for Federal Reserve Chairman Jerome Powell

According to the Zhitong Finance APP, U.S. Treasury Secretary Becerra stated on Wednesday that there is currently "no rush" to determine the successor to Federal Reserve Chairman Jerome Powell, and candidates may come from current members of the Federal Reserve Board or regional Federal Reserve Bank presidents. However, he did not disclose specific names.

Reports indicate that Becerra himself, National Economic Council Director Kevin Hassett, former Federal Reserve Governor Kevin Warsh, and current Federal Reserve Governor Christopher Waller are all on the list of candidates for Federal Reserve Chairman being considered by President Trump. In response, Becerra said, "The list is long, very long." "I will not discuss the specific selection process, but we have indeed initiated the relevant process." "Clearly, this will be President Trump's decision, and we are not in a hurry to make a decision."

It is worth mentioning that Becerra stated on Tuesday, "There are no factors indicating that Powell should resign now; he has been an excellent public servant." Becerra expressed support for Federal Reserve Chairman Powell to complete his term and believes that if Powell wishes to serve until May, he should do so. This statement sharply contrasts with recent criticisms of Powell from other U.S. government officials. However, at the same time, Becerra reiterated the desire to review the Federal Reserve.

Powell's term as Federal Reserve Chairman will end in May next year, while his term as a Federal Reserve Governor will last until January 2028. Becerra stated that Powell has not told him whether he will resign before 2028, but he believes "Powell will do so." Becerra added, "I think if Powell chooses to leave after his term ends, it will be a good thing for the Federal Reserve as an institution. It will also be good for him personally."

It is reported that Becerra mentioned in an interview last week that Powell should resign from his position as a Federal Reserve Governor at the same time his term as Chairman ends in May 2026; if Powell continues to serve as a Governor, the market will feel very confused.

Becerra also reiterated his criticism of Federal Reserve officials for misjudging the impact of Trump's tariffs on inflation, stating that their analysis "is somewhat divorced from reality." Regarding the recent tariff increases, Becerra said, "So far, what we have seen is that manufacturers are under pressure." He added, "We also see many retailers absorbing this cost. Many retailers have seen their profit margins become very rich during the pandemic." Becerra also mentioned that he met with Amazon (AMZN.US) CEO last week, who stated, "So far, they have not seen price increases."

Becerra expressed that he was "somewhat surprised" by the call from former CEO of Pacific Investment Management Company (PIMCO) and current President of Queens' College, Cambridge, Mohamed El-Erian, for Powell to resign on Tuesday. It is reported that Mohamed El-Erian stated on social media on Tuesday that if Powell's "goal is to maintain the operational independence of the Federal Reserve," then he should resign In this regard, Bessent stated, "If Powell conducts an internal review of activities outside of the Federal Reserve's monetary policy, it would benefit both him and the entire institution." "The Federal Reserve's 'mission creep' is threatening the independence of its monetary policy."

Bessent remarked, "Conducting an internal review is a good starting point. If this internal review does not seem serious enough, perhaps an external review could be considered." He also added that his regular meetings with Powell are still ongoing and stated, "We always maintain communication."