Trump May Have Chance to Appoint New Fed Chair Soon
James Fishback, the CEO of investment firm Azoria, shared his thoughts on the potential for President Donald Trump to appoint a new chair for the Federal Reserve sooner than anticipated, during a recent appearance on Fox News’ “Ingraham Angle.”
There’s buzz around Federal Reserve Chairman Jerome Powell, with names like Trump’s chief economic adviser, Kevin Hassett, and former Fed governor Kevin Warsh surfacing as possible contenders. Fishback highlighted a push by the Department of Justice to investigate Powell for allegedly committing perjury. In a discussion about this issue, Laura Ingraham wondered if vocal criticisms of Powell had any impact.
Fishback emphasized, “I think the president has this unique opportunity to not just boost the economy but to appoint a Fed chair much quicker than expected. Currently, the market is all about expectations. So, even if this new chair doesn’t officially start until next May, the market is likely to respond positively compared to the current situation with Powell.”
In the latest developments, Florida Republican Rep. Anna Paulina Luna announced plans to refer Powell to the DOJ, investigating perjury claims tied to the Fed’s significant renovation project, which has exceeded $2 billion. This move follows Powell’s own call for an investigation amidst growing concerns from Federal Housing Financial Institutions Director Bill Prute about the project, which commenced in July.
Trump, shortly after seeking inquiries about Powell’s renovation project, shared an article on True Social urging Powell to “resign immediately.” He pointed out Powell’s previous actions, including a significant rate cut that he believes was a desperate attempt to aid Kamala Harris before the election—a strategy he feels ultimately failed, given Trump’s electoral victory.
Tensions appear to be escalating between Trump and Powell, especially as the Fed has advised the president regarding inflation concerns. Powell has also expressed worries about the uncertainties created by Trump’s elimination of mutual tariffs on several countries. In early July, he stated that the U.S. Central Bank might have considered reducing its rates earlier if not for those tariffs.
Referring to the ongoing friction, Fishback commented, “The president is exercising his authority, calling for an investigation into the Fed chair, but it might be smarter to appoint a new chair sooner rather than later to effectively counter the narrative of ‘too late,’ a term Trump has used for Powell.”
Before the Luna announcement, Powell sought a review of the renovation costs and related issues, directing Fed Inspector General Michael Horowitz to look into it.
