Trump Administration Eyes New Fed Chair Amid Economic Turbulence

In a significant shake-up of the Federal Reserve leadership, the Trump administration is setting its sights on finding a successor for Jerome Powell this fall, U.S. Treasury Secretary Scott Bessent revealed in an interview with CNBC. Bessent highlighted the availability of promising candidates for the role, while also emphasizing that the Fed retains autonomy in deciding interest rates.

Currently, with a low unemployment rate and inflation marginally exceeding the 2% benchmark, Powell's approach of maintaining interest rates between 4.25% and 4.5% has been met with skepticism by President Trump. The administration anticipates that an upcoming tax bill, expected to pass through Congress, will bolster private sector investment, thereby strengthening the economy even as tariff hikes pose a temporary inflationary risk.

Bessent's remarks underscored a broader strategy of economic policy, emphasizing that the administration's recent tariffs have had limited inflationary impact to date. He noted a robust market recovery following an initial dip earlier in April, suggesting that any delay in rate cuts might necessitate steeper reductions in the future. The Treasury Secretary also touched on his contentment in his current position, amidst speculation about his role in the Fed's leadership.

(With inputs from agencies.)