PiCK

Trump may nominate Fed chair in early January next year

JH Kim

Summary

President Trump may announce the next Fed chair as early as the first week of January next year.
The candidate pool for the next chair could include figures more willing to pursue interest-rate cuts.
Markets are paying attention to the potential impact of the next Fed chair selection on future interest-rate paths and risk assets.

Donald Trump, the U.S. president, may nominate the next chair of the Federal Reserve (Fed) as early as the first week of January next year.

On the 22nd (local time), overseas economic breaking-news channel Walter Bloomberg reported that President Trump is considering an early announcement of a new Fed chair candidate. This is an unusually fast timeline given that current Fed Chair Jerome Powell's term ends in May next year.

According to the outlet, President Trump appears to intend to proactively shape the market's expectations about the future direction of monetary policy through the next Fed chair appointment. In particular, it has been suggested that the candidate pool could include individuals more inclined toward cutting interest rates.

Earlier, President Trump repeatedly criticized Powell's interest-rate policies, and controversy over the Fed's independence has continued. Accordingly, there is growing attention to the potential impact of the next chair selection process on financial markets.

Markets are watching related news because the timing of the next Fed chair nomination and the nominee's stance on monetary policy could affect the future path of interest rates, Treasury yields, and risk assets more broadly.