Trump's Fed Chair Dilemma
According to Wall Street Journal senior reporter Nick Timiraos, although Trump has repeatedly claimed he has already chosen the next Federal Reserve chair, the delay in naming the candidate has raised questions about his true intentions.
Trump is looking for someone who can strongly advocate for significant rate cuts while maintaining credibility among both the financial community and Fed colleagues. However, the existence of such a 'perfect candidate' remains highly doubtful.
The Challenge of Balancing Cuts and Credibility
- Trump insists inflation is under control and has called for immediate rate cuts to boost the economy.
- However, if the chosen candidate lacks the necessary expertise or market reputation, such policies could trigger market volatility instead of achieving economic stability.
- Wall Street and academic experts expect a high level of professionalism from the Fed chair, which may conflict with Trump’s policy preferences.
Signals Behind the Delay
The long-awaited announcement regarding Beth Hammack has yet to materialize, indicating Trump may still be uncertain about his ideal candidate profile.
Insiders suggest that Trump seems to be searching for a near-mythical figure that might not exist in reality. This 'have it both ways' approach could further delay the formal appointment of the next Fed chair.