US Treasury Secretary: Fed Independence Is Crucial; New Chair Should Have Forward-Thinking
Skills

According to CCTV News, on August 10 local time, US Treasury Secretary Besant stated that he is leading the search for a successor to Federal Reserve Chair Jerome Powell.

Besant also defended the Fed’s independence, expressing concern that monetary policy independence is being eroded. This independence is crucial for economic stability and inflation expectation management.

Earlier, market sources reported that Besant is spearheading the search for Powell’s replacement. The candidate list has now expanded to include former St. Louis Fed President James Bullard and Mark Sommerlin, who served as an economic advisor to former President George W. Bush.

Bullard stepped down as St. Louis Fed president last year and is now dean of Purdue University’s business school. During his tenure at the St. Louis Fed, he was the supervisor of another top contender for Fed chair—current Governor Christopher Waller. Waller previously served as executive vice president and head of research at the St. Louis Fed before being tapped by Trump to join the Fed Board.

Reports also indicate that around 10 candidates are currently vying for the Fed chair position. It remains unclear what the expanded list means for the timing of the appointment.

Last Thursday, Trump nominated his senior economic advisor Stephen Milan to fill a vacant Fed governor seat left by Adriana Kugler’s early resignation, which expires in January next year. Trump stated he would continue searching for Fed governor candidates.

Analysts say Trump’s move serves a dual purpose: installing a loyalist in the Fed in the short term while buying time to strategize the critical appointment of the next Fed chair.

Over the past few months, Trump has repeatedly pressured Powell, criticizing him for being slow to cut interest rates and calling for his resignation. Critics argue the president should let Powell serve out his term undisturbed. Powell’s term ends in May next year.