According to local media citing sources familiar with the situation, Trump's economic advisory team submitted a potential candidate list for the next Federal Reserve Chairman to the former US President during an internal meeting held last week at the Sealake Estate Club in Florida.
It is worth mentioning that well-known journalist Nick Timiraos, known as the "New Federal Reserve News Agency," also participated in the writing of this media report.
It is reported that at last Thursday's meeting, Steve Moore and Arthur Laffer, who have long been providing advice on economic issues for Trump, recommended three candidates:
Kevin Warsh - served as the White House Economic Policy Advisor during Bush's tenure and served as a Federal Reserve Director from 2006 to 2011;
Kevin Hassett - former Chairman of the Council of Economic Advisers during Trump's tenure;
Arthur Laffer (not self recommended, recommended by others in the team) - served as the White House economic advisor during the Reagan era, was one of the founders of supply side economics theory, and was also a supporter of the 2017 tax cuts that Trump signed into effect.
The above-mentioned sources stated that Trump has not yet made a commitment to any candidate and is expected to cast a wide net in the coming months, considering who to replace the current Federal Reserve Chairman Powell.
Powell's term as Federal Reserve Chairman will end in 2026, while his term as a Federal Reserve Director will end in early 2028.
It is expected that other external groups will also propose candidates to Trump in the future. It is reported that Trump's current focus is on choosing a running mate.
"We do not comment on any private discussions that may or may not have occurred, and others should not comment," said Steven Cheung, spokesperson for the Trump campaign team
If Trump takes office, Powell is unlikely to be re elected?
Although the final candidate is far from being finalized, it appears that once Trump wins this year's US election, current Federal Reserve Chairman Powell is unlikely to be re elected!
During Trump's previous presidency, he selected Republican Powell as the Chairman of the Federal Reserve, replacing Democrat Yellen. But after Powell took office, Trump quickly developed an aversion to him - Powell broke the long-standing tradition of the US government and publicly rebuked the Federal Reserve leader, first criticizing his interest rate hike decision, and later rebuking him for not cutting rates quickly enough after the pandemic.
When criticizing the Federal Reserve's monetary policy decisions, Trump has repeatedly accused Powell of being the "enemy" of the United States.
In February of this year, Trump once again fiercely criticized the current Federal Reserve Chairman, Jerome Powell, in a media interview, accusing him of "playing politics" when formulating interest rate policies. When asked if he would consider reappointing Powell as the Chairman of the Federal Reserve, starting his third four-year term, Trump replied without hesitation, "No, no."
He also revealed at the time that he had several candidates in his mind to replace Powell, but did not specifically disclose the identities of these candidates.
At present, it is unclear whether Trump will attempt to dismiss Powell before his term expires if he wins this year's election. Although from a technical process perspective, doing so is not easy.
According to Section 10.2 of the Federal Reserve Regulations of the United States, the President may dismiss the Chairman of the Federal Reserve for certain reasons, but cannot act at will. These "reasons" usually refer to serious criminal behavior, rather than differences of opinion on monetary policy.
Powell has long stated that the Federal Reserve's decision-making actions are evidence-based and aimed at promoting a strong labor market and low inflation, without considering political factors.
According to Steve Moore, a Trump staff member who provided the above list; Quota; If Trump wins the election, this may be one of his most important decisions in terms of personnel, aside from the Supreme Court nominee. "We agree - and of course Trump also agrees. (Choosing) Powell was a mistake, so we need to make sure we don't make mistakes again."
For several weeks, several members of the Moore team have been privately discussing potential candidates for the position of Federal Reserve Chairman, hoping to propose a consensus candidate list that can be submitted to the President. These individuals claim that Laffer did not participate in the group's discussion on including him on the candidate list.
They also discussed other candidates, but did not receive unanimous agreement from the group members. The other candidates that the group has considered include former World Bank President David Malpass and Judy Shelton, who served as an informal advisor to Trump's campaign team in 2016. The latter was nominated by Trump to serve as a member of the Federal Reserve in 2019, but her nomination did not receive enough support in the Senate at the time.