Topline
President Donald Trump told reporters Thursday he will announce his pick to replace Federal Reserve Chairman Jerome Powell on Friday morning, making the announcement after the Federal Reserve voted to pause rate cuts this week.
Key Facts
“I’ll be announcing the Fed chair tomorrow morning,” Trump said at a screening for First Lady Melania Trump’s self-titled documentary, “Melania.”
The comment came as a surprise, as Trump initially said in a Cabinet meeting Thursday morning he would announce his pick sometime next week.
Powell’s term is up in May, though he could stay on the board as governor, something that has not been done since the 1940s.
The Federal Reserve voted Wednesday to maintain interest rates between 3.5% and 3.75%, with two Fed officials, one of whom is a Trump appointee, arguing for a quarter-point reduction.
Trump called Powell a “moron” after the vote and claimed he had “absolutely no reason to keep them so high,” referring to interest rates.
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Key Background
Powell has been one of Trump’s top targets for criticism and ridicule since the president started his second term last year, disagreeing with the majority of the chair’s decisions. Trump’s Department of Justice launched an investigation into Powell, who cannot be simply fired by the president, this month over alleged false statements he made in testimony about a $2.5 billion renovation of the Federal Reserve’s headquarters, which Powell has vehemently denied. Former Fed Governor Kevin Warsh, member of the Federal Reserve Christopher Waller, National Economic Council chief Kevin Hassett and BlackRock executive Rick Rieder are possible candidates to take over for Powell, who has not yet confirmed if he will stay on the Fed board following his term as chair.
Further Reading
Trump Claims US Should Pay World’s ‘LOWEST’ Interest Rates After Fed Paused Cuts (Forbes)
Why The Trump Administration’s Investigation Against Jerome Powell May Not Succeed (Forbes)
