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By selecting the next Fed chairman, how can Trump "released" and put pressure on Powell to cut interest rates?
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market xmltrust.comment]: How can Trump "recruit" and put pressure on Powell to cut interest rates by selecting the next Federal Reserve Chairman?" Hope it will be helpful to you! The original content is as follows:
This TV draft-style selection method may provide an excuse for the White House to meet with certain current Federal Reserve officials who do not support interest rate cuts.
Treasury Secretary Scott Becente is touting the "open and transparent" process of the Trump administration's selection of the next Fed chairman, but experts point out that this is really just a political performance aimed at putting pressure on the Fed's board of directors to cut interest rates.
The White House announced earlier this month the 11 final candidates to replace current Federal Reserve Chairman Jerome Powell, whose term will expire next May. Unlike the short list of Trump loyal fans rumored for months, the new list includes current and former Federal Reserve officials for the first time. By expanding the scope of candidate considerations, government officials may gain access to private xmltrust.communication with certain xmltrust.commissioners to convey policy positions where the time for a rate cut is already on.
For months, President Trump and his senior advisers have continued to put pressure on Powell and the Federal Reserve to cut interest rates.
Bester said that the list of candidates to succeed Powell now includes 11 "strong xmltrust.competitors". He revealed that he would meet with the candidates in the xmltrust.coming weeks and eventually screen out a short list to submit to Trump. "I will conduct these talks with a xmltrust.completely open mind," Bescent stressed.
The shortlist rumored over the past few months only includes former Fed director Kevin Wash, Trump economic adviser Kevin Hassett and current Fed director Christopher Waller.
The expanded list has three key changes: three current Fed officials are included for the first time - Vice Chairman Michelle Bowman, Philip Jefferson and Dallas Fed Chairman Lori Logan;Larry Lindsey and James Brad, a former Fed official, appeared for the first time, including Marco Summerlin of EvenflowMacro, Rick Reed of BlackRock and David Zeworth of Jefferies.
The experts questioned this "open and transparent" selection process. They pointed out that Trump would not choose someone he was unfamiliar with or lacked loyalty. More importantly, he needs to ensure that the next Fed chairman can support its demand without reservation—slashing interest rates by 150 to 175 basis points.
Tim Duy, chief economist at SGH Macro Advisors, said: "This list seems to contain many candidates who are simply impossible to be elected as Fed chairman, and there is indeed a show xmltrust.component." The most surprising nominations were Fed Vice Chairman Philip Jefferson and Dallas Fed Chairman Lori Logan.
As vice chairman of the Federal Reserve Board of Directors, Jefferson, who is a scholar, is a member of Powell's core decision-making circle and is appointed by former President Joe Biden. Logan, a former senior Fed official, is known for being cautious about rate cuts.
This seemingly crazy approach may have hidden secrets
LHMeyer/Monetary co-founder Derek Tang said: "This list may provide an excuse for the White House to meet with certain Fed officials who oppose interest rate cuts, which is more moderate than directly calling them to the White House to scold them in person. Both sides can honestly discuss the rationality of maintaining interest rates unchanged."
Analysts interviewed by Market Watch generally believe that this list is just another move by Becent to put pressure on Powell. "It can be said that this is trying to push Jefferson and Logan into a dovish position," said Stephen Mairo, executive partner of Beacon Policy Advisors. "The Beacon team is doing everything possible to put pressure on the situation," Mairo added. "At the end of the day, they can't control the presidential candidate by next May, but are eager to start a rate cut. The third motivation may be: the finalists are in order to maintain the candidates." Ge may form a choir for interest rate cuts, thus drowning out opposition voices. "Mayro admitted: "From the White House perspective, the longer the candidates who xmltrust.compete for the position of Fed Chairman talk about the reasons for interest rate cuts in the media, the more favorable the situation will be."
Duy believes that Becente's efforts to create public opinion on interest rate cuts in the market have begun to show results: "He is affecting the interest rate market, and to some extent can be called the shadow chairman."
Who is the throne of the Fed Chairman?
Experts say the results of Powell's successor are unpredictable and it seems that the decision will not be made soon. Don pointed out: "Trump has not yet faced nomination pressure and there may not be substantial progress in the next few weeks."
Although the shortlist is surprising, analysts generally expect the final candidate to be unlucky. Many of the people on the list are regular visitors to the financial media. "I think the scope of core candidates is still very small," said Beacon xmltrust.company Mairo.p>The popular candidates recognized for months have always been the "double Kevin xmltrust.combination", namely Wash and Hassett. The potential xmltrust.competitor recently added is Trump's economic adviser Stephen Milan, who has been nominated to temporarily fill the Fed's vacancy.
The candidates on the other 11 people's list seem to have little chance of winning. "Trump seems to be more interested in the Fed outsider." Treasury Secretary Scott Bescent is a name repeatedly mentioned, and most people still regard it as a potential dark horse.
LHMeyer's analysis said: "Bester should not be excluded from my observation. Although he himself declined the nomination and Trump was very satisfied with his Treasury Secretary's work, there were still great variables before the final decision."
The above content is about "[XM Foreign Exchange Market Review]: How can Trump "recruit" and pressure Powell to cut interest rates by selecting the next Federal Reserve Chairman?" is carefully xmltrust.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your transaction! Thanks for the support!
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