According to BlockBeats, U.S. Federal Reserve Chair Jerome Powell is set to deliver a speech at the European Central Bank's Central Banking Forum on Tuesday. Meanwhile, the White House is intensifying efforts to plan for Powell's succession, as internal divisions within the Federal Reserve become increasingly apparent.
U.S. Treasury Secretary Besent stated on Monday that a potential successor for Powell is already being considered for when his term ends. Besent also mentioned that the U.S. government might appoint someone to fill a crucial Federal Reserve Board seat vacancy in January next year, who could later assume the chairmanship. Shortly after Besent's remarks, U.S. President Donald Trump escalated his criticism of Powell and the Federal Reserve, accusing them of maintaining excessively high interest rates, which he claims have cost the U.S. "trillions of dollars." Trump asserted that the Federal Reserve "should be ashamed of itself."
Simultaneously, divisions within the Federal Reserve are widening. Two officials appointed by Trump, Waller and Bowman, are advocating for an interest rate cut as early as July. This internal split is negatively impacting the fragile economy. The June non-farm payroll report, set to be released on Thursday, may further complicate the economic outlook.