Director of the White House National Economic Council: Trump 'needs a few more months' to decide on the new Chair of the Federal Reserve
White House National Economic Council Director Kevin Hassett stated that U.S. President Trump needs a few more months to decide who will succeed Powell as Chair of the Federal Reserve.
"I would think it will take a few more months before the president makes a decision," Hassett said in an interview on Monday, noting that Treasury Secretary Scott Basset is "responsible for a detailed search process. He and the president are interviewing many very qualified candidates."
Powell's term as Chair of the Federal Reserve will expire next May.
Hassett also stated that he believes "Powell's speech at Jackson Hole was reasonable." Powell pointed out on Friday that changes in baseline outlook and risk balance could constitute the basis for the Federal Reserve to adjust its policy stance.
"I think the Federal Reserve was a bit late to the game," Hassett said, noting that the annualized price increase over the past six months stands at 1.9%, "so inflation has come down quite a bit."
Additionally, Hassett mentioned that after the U.S. government recently acquired nearly 10% of Intel, Trump may further push for shares in other private companies. He described the Intel transaction as "the initial payment for a sovereign wealth fund, like many countries have."
When pressed on whether the business community should expect the government to increase its stake in corporate equity, Hassett said: "It's possible."
"In the past, the federal government has been quickly throwing money at businesses, but taxpayers have received no return," he said, adding that the government has no intention of operating private enterprises and that its holdings do not carry voting rights.
