La Derecha Diario Who are the main candidates to replace Jerome Powell at the Fed?
The United States Secretary of the Treasury announced in an interview that there are eleven strong candidates to succeed the current head of the FED
The United States Treasury Secretary, Scott Bessent, confirmed this Tuesday, August 19, that 11 candidates are being considered to succeed the current Federal Reserve Chair, Jerome Powell, whose term ends in May 2026.
The Donald Trump administration believes that the current interest rates are negatively affecting the housing market, low-income households, and the servicing of the growing national debt, which exceeds 37 trillion dollars.
Bessent even suggested that the Central Bank should cut rates by 50 basis points, twice what the market currently expects, to boost housing construction and control future inflation.
According to the head of the economic portfolio, the candidates come from both the current Federal Reserve and the private sector. The final selection will be presented to President Trump, who has shown a critical attitude toward the banking entity and is pressing for a correction in monetary policy.
Michelle Bowman
Current Federal Reserve Governor. She was originally appointed in 2018 and reconfirmed in 2020. She is the first person with community banking experience to hold a seat reserved for representatives of that sector on the Board of Governors.
With a conservative orientation in monetary policy, Bowman has consistently expressed her concerns about inflationary risks and has advocated for a more prudent interest rate policy. She has also defended maintaining the Federal Reserve's independence from political pressures.
Her approach usually prioritizes price stability and the health of regional banks, highlighting the importance of a strong banking system to support rural communities and small businesses.
She has been perceived as an institutional official who respects internal processes. Her technical expertise and moderate profile make her a serious candidate to succeed Powell.
Christopher Waller
He has been a Federal Reserve Governor since 2020 and previously served as Director of Research at the St. Louis Federal Reserve. With a solid academic background and a generally moderate stance, Waller has supported rate cuts when economic conditions justify them, although he has also acknowledged the need to control inflation.
He is an advocate of transparency in monetary policy communication and has demonstrated openness to the use of unconventional tools if necessary.
Kevin Hassett
He is an economist and current Director of the National Economic Council at the White House. Previously, he was Chair of the Council of Economic Advisers during Trump's first term.
With a solid academic background and a pro-market approach, Hassett is known for his advocacy of tax cuts, deregulation, and economic stimulus policies.
He has been a key figure in designing the 2017 tax reform and keeps a critical stance toward Federal Reserve decisions that, in his view, have limited economic growth. Close to President Trump, his profile is clearly political and aligned with the current administration's economic vision.
Kevin Warsh
Former Federal Reserve Governor (2006–2011) and key economic adviser during the 2008 financial crisis. With experience on Wall Street and in government, Warsh is recognized for his critical approach to prolonged expansionary monetary policy and his emphasis on price stability.
He has advocated for greater transparency and accountability at the Fed. Close to Republican circles, he was already considered by Trump as a possible chair of the central banking entity in 2018.
His profile combines technical credentials with strong political backing, and his appointment would signal a possible more "hawkish" (restrictive) orientation in monetary policy.
Philip Jefferson
He has been a Federal Reserve Governor since 2022 and has an outstanding academic career in economics, focused on issues of inequality, economic mobility, and monetary policy. Before his appointment, he was Academic Vice President at Davidson College and worked as an economist at the Fed Board.
His approach is considered balanced, with sensitivity to the social impacts of economic decisions. Although he was originally nominated by Democrat Biden, he has maintained an institutional and nonpartisan stance.
Lorie Logan
She has been President of the Dallas Federal Reserve since 2022 and previously was Director of Market Operations at the New York Fed, where she oversaw the implementation of monetary policy and operations in financial markets.
She stands out for her technical profile, including balance sheet and interest rate management. She is respected for her deep operational knowledge and pragmatic approach. Her leadership is seen as technocratic and oriented toward the stability of the financial system.
Larry Lindsey
Former Federal Reserve Governor and former economic adviser to President George W. Bush. He is known for having warned about the housing bubble before the 2008 financial crisis.
With a fiscally conservative stance, he has been critical of expansionary monetary policies and excessive public spending. Lindsey advocates for a more restrained Fed focused on price stability.
James Bullard
He was President of the St. Louis Federal Reserve until 2023 and is known for his innovative and communicative views on monetary policy.
Although he has shown both dovish and hawkish stances depending on the context, he has been a proponent of proactive rate adjustments to respond quickly to economic changes. He is valued for his clarity in communicating Fed decisions and for his dynamic approach to macroeconomic challenges.
Rick Rieder
He is Chief Investment Officer of Global Fixed Income at BlackRock, one of the world's largest asset managers. With decades of experience in financial markets, he is widely respected for his macroeconomic vision and practical knowledge of monetary policy. Rieder has been an advocate of lower rates to support growth and ease the debt burden.
David Zervos
He is Chief Market Strategist at Jefferies, with extensive experience in macroeconomic and monetary policy analysis. Known for his clear and direct opinions, Zervos combines a pragmatic approach with deep knowledge of financial markets.
He has advocated for interest rate cuts to stimulate the economy, highlighting the need to support growth in the face of global risks. His profile brings a market- and investment-oriented perspective, with a strong emphasis on the interaction between monetary policy and financial behavior.
Marc Sumerlin
Former Deputy Director of the National Economic Council and economic adviser with extensive experience in public policy and macroeconomic analysis. He has worked on the formulation of economic strategies at the White House during the George W. Bush administration, focusing on fiscal and regulatory issues.
Sumerlin combines a technical profile with political understanding, advocating a balanced approach that promotes economic growth while maintaining financial stability.
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