Trump "Powell is incompetent... next Fed chair to be announced next month"

"I want Powell removed... a lawsuit is possible"

Hassett, Warsh, Waller mentioned as candidates

U.S. President Donald Trump again raised the possibility of removing Jerome Powell, chair of the U.S. central bank (Fed), increasing the pressure. He said he would announce the next Fed chair candidate next month.

Trump said on the 29th (local time) at Mar-a-Lago in Florida, after a joint press conference with Israeli Prime Minister Benjamin Netanyahu, "That person (Powell) is simply incompetent," and "I could file a lawsuit against him." He also said, "I want to remove him," and "I can still do that."

Trump, who has shown displeasure that Powell has been reluctant to cut the policy interest rate, also mentioned the possibility of a lawsuit last August, saying the renovation costs of the Fed building were excessive. This is interpreted as an intention to bring in a successor more inclined to cut rates before Powell's term ends in May next year.

Trump said that day, "I will announce the next Fed chair candidate next month." Candidates mentioned for the next Fed chair include Kevin Hassett, chairman of the White House National Economic Council (NEC), former Fed governor Kevin Warsh, and Fed governor Christopher Waller. Among them, Hassett, regarded as a leading candidate, has made claims similar to President Trump, saying "(The Fed) should have lowered rates earlier."

However, it is reported that there are opposing views within the White House, saying "he is too close to the president." There are concerns that this could limit the ability to maintain the independence of monetary policy needed to curb inflation.

According to betting platform Kalshi, as of that day Hassett's chance of being nominated as Fed chair was calculated at 42%. Warsh was at 33%, and Waller at 12%.

Dayeon Lim, reporter allopen@hankyung.com