In a recent meeting, former President Donald Trump was presented with a list of potential candidates to replace Jerome Powell as the head of the Federal Reserve. This list was put forward by influential economic advisers, who are also considering a potential second term for Trump.
What Happened: The list of candidates was presented to Trump at his Mar-a-Lago club in Florida last week, reported The Wall Street Journal on Sunday. The list was presented by economic advisers Steve Moore and Arthur Laffer, who have been long-time economic advisors to Trump.
The three candidates proposed were Kevin Warsh, an economic-policy adviser to President George W. Bush who later served on the Fed's board of governors; Kevin Hassett, a former chairman of the Council of Economic Advisers during the Trump administration; and Laffer himself.
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Trump did not make any commitments to the candidates, and he is expected to consider a wide range of options in the coming months. His primary focus is currently on selecting his running mate for the potential second term.
Why It Matters: Trump’s economic advisers have proposed potential candidates for the Fed chair position, which is significant in light of the current economic climate. Powell, who has been nominated for a second term by President Joe Biden, has been criticized by Trump for his monetary policy decisions. Trump has accused Powell of trying to help the Democrats in the upcoming election by considering interest-rate cuts after a series of rate increases aimed at combating inflation.
Meanwhile, Powell has expressed optimism about the state of the economy despite the challenges many Americans face. His comments are supported by unemployment remaining below 4% and a general downward trend in inflation, even if it has not yet reached the Fed’s 2% target.
Read Next: US Consumer Sentiment Holds Steady In March, Inflation Expectations Remain Above Fed’s 2% Target
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