Trump's USA Fed vs. inflation

White House: No way to appoint new Fed chief early

A decision by the White House to appoint Federal Reserve Chairman Jerome Powell's replacement in advance is not expected in the near future. The White House told the FT, adding that "the president has the right to change his mind."

"The president has many good options for the next Fed chief," the response also said.

The information that Trump wants to appoint a new Fed chief before the end of his term is interpreted as an attempt to put pressure on the central bank to lower interest rates, according to media reports. In response, the dollar fell to its lowest level in three years against a basket of major currencies.

Analyst chief: Trump makes Powell a "lame duck"

Preventing Jerome Powell's resignation in May next year and nominating a new Fed chief already after the summer could be a way for Donald Trump to weaken the current leadership within the central bank. This is what EFN writes.

- Here Trump may have found another way and can make a "lame duck" out of Powell if they appoint a chief who is significantly more dovish, says Karl Steiner, head of analysis at SEB, to the economic channel.

The Financial Times, which earlier on Thursday wrote about how the dollar reached a new three-year low in the wake of Trump's speech, speculates whether a new chief could be a hint of earlier interest rate cuts. Steiner does not think so.

- The Fed really wants to show that they are not politically influenced.

Sources: Trump may appoint new Fed chief this summer

US President Donald Trump is considering announcing who will succeed Jerome Powell as head of the Federal Reserve this summer or fall, sources told the Wall Street Journal.

If so, it would happen well before Powell's term expires in eleven months. According to the information, the aim is to influence market expectations and put pressure on the current chief.

Among the names mentioned as possible successors are former Fed member Kevin Warsh, White House economic advisor Kevin Hassett and Treasury Secretary Scott Bessent.