Trump will nominate a temporary Federal Reserve governor to save the situation. "Which of the two Kevins" will laugh last?
U.S. President Trump plans to nominate an interim Federal Reserve Board member in the coming days to fill the upcoming vacancy. He stated that the interim candidate will be announced in two to three days and may come from Wall Street. Trump's advisory team suggested first identifying a short-term candidate to complete the term of former board member Quarles. Trump also mentioned that former Federal Reserve board member Kevin Warsh and National Economic Council Director Kevin Hassett are the main candidates for the Federal Reserve Chair
According to the Zhitong Finance APP, U.S. President Donald Trump stated that he may nominate an interim Federal Reserve governor in the coming days to fill the upcoming vacancy on the Federal Reserve Board, rather than using this position to indicate his choice to succeed Jerome Powell as Federal Reserve Chairman.
Trump told reporters at the White House on Wednesday, "I think the interim candidate will be announced in the next two or three days, after which we will determine the formal candidate."
Federal Reserve Governor Adriana Kugler announced last week that she plans to resign on August 8.
This leaves Trump with options: he can either promote someone to complete her term until January next year while continuing to weigh the chairman candidates, or he can decide on the Federal Reserve chairman candidate several months in advance and announce it immediately.
Several candidates on Trump's Federal Reserve shortlist come from outside the system, and before Chairman Powell's term ends in May next year, the president may not have another opportunity for nomination. Although Federal Reserve chairmen typically leave the board upon resignation, Powell's term as a governor will last until 2028, and he has not yet disclosed his plans regarding his future.
The advisory team suggested that the president first determine a short-term candidate to complete Kugler's remaining term until January next year. This strategy would give Trump several weeks or even months to interview chairman candidates. Trump indicated on Wednesday that he is leaning towards this plan.
He mentioned that he is considering "about" three interim candidates and hinted that they may come from Wall Street. "After all, we are essentially all Wall Street people, aren't we?" Trump said.
He revealed that advisors including Secretary of Commerce Howard Lutnick, Secretary of the Treasury Scott Bessen, and Vice President JD Vance are involved in the selection process.
Trump also reiterated that he believes "the two Kevins"—former Federal Reserve Governor Kevin Warsh and Director of the National Economic Council Kevin Hassett—are the main candidates for the Federal Reserve chairman position
