"Dumb and Political" Trump Rages... Will Powell Be Replaced by Year-End?

NYT: "Even If Rate Cuts Begin, Trump’s Attacks Will Continue"

Scott Bessent, U.S. Secretary of the Treasury, anticipated that the successor to Jerome Powell, Chair of the U.S. Federal Reserve (Fed), could be announced around the end of the year.

In an interview with CNBC on the 30th (local time), Secretary Bessent was asked when the next Fed chair candidate would be revealed and responded accordingly. Powell’s term ends in May next year.

President Donald Trump, following another Fed decision to hold the benchmark interest rate steady, once again criticized Chair Powell.

President Trump posted on Truth Social, "Jerome 'Too Late' Powell did it again," adding, "He is far too late to be Fed Chair. And in fact, he’s angry, dumb, and political."

He went on to say, "He’s not only responsible for one of the most incompetent or corrupt building remodels in construction history, but is costing our country trillions of dollars," and added, "In other words, Powell is a total failure and our country is paying the price."

The New York Times (NYT) wrote that even if the Fed starts cutting rates, President Trump’s attacks on the Fed are unlikely to stop. President Trump wants the Fed to bring the current benchmark interest rate, which stands at 4.25~4.50%, down to 1%, but even if the Fed starts cutting rates, the NYT said it is unlikely to do so at such an aggressive pace.

The NYT added that none of the Fed policymakers, including Christopher Waller—Fed governor appointed during Trump’s first term—and Michelle Bowman—Fed vice chair—support cutting the benchmark to 1%.

According to the dot plot released in June, the median interest rate forecast by Fed members was 3.875% by the end of this year and 3.625% by the end of next year. Fed members expect rate cuts to proceed at a slow pace through next year.

Hyewon Ahn, Hankyung.com reporter anhw@hankyung.com