Trump chooses new Fed chairman, which name will "shake" the market?

(Dan Tri) - President Trump revealed that he is about to appoint a new person to the position of Fed chairman. Experts say this decision could have a strong impact on the financial market.

Recently, US President Donald Trump said he will announce the nominee to replace the position of Governor of the US Federal Reserve (Fed) Adriana Kugler before the end of this week, and has shortened the list of candidates to replace Fed Chairman Jerome Powell to four people.

“I’ll make a decision before the end of the week,” Trump said at the White House, referring to plans to appoint a successor to Kugler, who announced she would be leaving her post on August 8 to return to teaching at Georgetown University.

But with the remaining seats on the Fed Board already filled by long-termers, Trump’s choice could be strategic. Experts say bringing a trusted figure to the Fed early could help Trump build momentum for Powell’s succession.

The shortlist reportedly includes economic adviser Kevin Hassett, former Fed Governor Kevin Warsh - who has supported Mr Trump - and two other candidates, one of whom is believed to be current Fed Governor Christopher Waller.

In an interview with CNBC earlier, President Trump confirmed that he removed Treasury Secretary Scott Bessent from the list because the Secretary wanted to continue holding his current position.

Mr Trump called Ms Kugler's decision to leave early a "pleasant surprise" because it allows him to appoint a new person immediately - someone who can be "tested" before being officially nominated to replace Mr Powell.

While Kugler’s successor will now serve only the remainder of his term, which runs through January 2026, Trump could nominate them for a full 14-year term, making them a leading candidate to be the next Fed chair.

"Many people ask me, why don't I just choose a new president? Maybe I will," President Trump revealed.

Since the beginning of his re-election term, Mr. Trump has repeatedly publicly criticized Fed Chairman Jerome Powell for not lowering interest rates, even considering the possibility of firing him.

Meanwhile, Mr. Powell and most Fed officials believe that with the unpredictable impact of tariffs on inflation and US economic growth, policymakers will wait until that impact is clearly determined before deciding when to cut interest rates.

In that context, the sudden dismissal of Ms. Erika McEntarfer - Director of the US Bureau of Labor Statistics has further raised public concerns about the independence and transparency of key economic data. President Trump accused the Bureau of Labor Statistics of "manipulating employment data" to damage his image, although no specific evidence has been provided.

"If Trump picks a lackey for the Fed chair, the market reaction will be 1,000 times more intense than if he fired the head of the Bureau of Labor Statistics," Michael Strain, director of economic policy studies at the American Enterprise Institute, said in the report.

Shortly after the Fed decided to keep interest rates unchanged at 4.25-4.5% last week, Governor Christopher Waller expressed a dissenting view, saying that the inflation risk from import tariffs was negligible, while growth and the labor market were clearly weakening.

The July jobs report released on August 1 also reinforced that view, showing a slowdown in job creation, along with downward revisions to previous months. Many investors now expect the Fed to start cutting interest rates at its policy meeting on September 16-17.

Source: https://dantri.com.vn/kinh-doanh/ong-trump-chon-chu-tich-fed-moi-cai-ten-nao-se-rung-chuyen-thi-truong-20250806225526967.htm