Discussion of interest rates from Walir, Bowman, Fuolsby, leads to a question, the next Federal Reserve Chairman

Trump said that he has three or four names in mind, while economists have suggested that the internal discussion between the FOOC Open Market (FOM) may suggest “test” to the role of Powell.

Sources said overnight Wall Street Journal Trump may name the next Federal Reserve Chairman – or women – in an attempt to undermine Powell, who was with him It has publicly disagreed with Powell refuses to reduce the basic price.

Trump’s threats against Powell included everything from his launch before his term –A step that retreated after the markets interacted negatively-Besides Contact him “Stupid”, “difficult”, and gave him the title “very late Powell”.

Replacement speculation

As Powell Caliphate crawls the political agendaAnalysts began to speculate on the one who took into account Trump.

While the markets want to see a candidate Acknowledges and protects the autonomy of the Central BankIt is also not an extension that we assume that the president will likely think the candidates who called for a reduction in the interest rate, in line with his thinking.

If this is the case, Trump has some names to be chosen from.

The first is Chris Waller, a member of the Governor at the Federal Reserve, who has served since 2020. FOMC voting member has appeared in recent weeks, saying that the reduction may come early next month.

“I think we can do this early in July,” Waller told CNBC.Squawk box“Friday.” This will be my opinion, whether the committee will agree with it or not. ”

This step led Jeremy Siegel, Fakhri Finance Professor at Warton College at the University of Pennsylvania, to interrogate the motives and wire. Writing for Wisdomtree, Where he would be, where Chris Waller argued, “when Chris Waller argued … to reduce the potential July prices. Is it a test to be a Powell alternative?

Another FOMC member is now defending the reduction is Michelle Bowman, and is also a member of the voting from the Board of Governors.

In ready notes at a conference in Prague this week, Bowman said: “In the event of inflation pressure, I will support the reduction of the policy rate as soon as our next meeting meets in order to make it closer to its neutral environment and maintain the health labor market.

“Meanwhile, I will continue to carefully monitor economic conditions such as management, economics and financial policies in development.”

He will not be alone in his interrogation line about the reason for two some somewhat FOMC hawks.

“Our minds have crossed, therefore, that both federal reserve officials are increasingly increasing for the function of the Federal Reserve Chair as soon as Jay Powell ends, by placing themselves in a price cutting camp,” wrote Terry Wizman and Gareth Perry in this week’s memo. luck. “But their comments also indicate that the July meeting” in playing “to reduce prices.”

The Powell press conference after the last meeting was more than that more than the previous conference, which means that the general shift towards cutting does not make the audience from Walir and Poman suddenly.

Analysts added: “Certainly, it is not likely that everyone on FOMC is on the same page so far, but even if there are no political motives to work in making decisions in making decisions and opposition, FOMC will continue to be drifting towards lowering prices, and it is certain that in June it was not due to the uncertainty surrounding observation.”

The Federal Reserve refused to comment.

Beyond

Outside of the Board of Governors there are some other prominent names that called – perhaps less powerful – to reduce.

This includes the President of the Federal Reserve at Chicago Austan Golsby, who He said earlier this week If inflation continues to stay on a way even somewhat despite the definitions, price discounts may continue. While it was framed: “If dirt is outside the air, I think we must go forward.”

However, when Golsby was previously asked about any designs to become the Federal Chairman, she stood behind Powell.

“I am a big fan of the Powell chair and I always say it is the first ballot hall in my book, and I have high standards,” Goolsbee said luck last year. “(Former Federal Reserve Studies) Paul Volker was my dear friend. And Powell, no one has a better judgment than this man.”

Another name in the competition – is generally seen as a vocabulary player – Kevin Warsh, who served in the Board of Directors of the Federal Reserve System from 2006 to 2011.

Wrash called for price discounts previously, as a committee at the Hoover at Stanford University was told again in May, “If the printed press is calm, we may have lower political rates.”

He also publicly made an explicit comment on how to run and make its decisions. For example, Speaking to a conference in Washington in AprilThe former special assistant assistant to President George W. Bush said that the front orientation used to make decisions has a “little role in playing” in normal economic conditions.

Warsh, who was formerly CEO of the National Economic Council of the White House, warned against opinions about the future of prices, adding: “Federal reserve leaders will serve well to overcome opportunities to exchange their recent reflections.”