Donald Trump stated that he has made a final decision on who will head the Federal Reserve. The main requirement from the White House for the candidate is the readiness to ensure a decrease in interest rates, reports Bloomberg.
"Yes, I know who I will choose. We will announce this," Trump told reporters on his way to Washington, not naming a specific person.
Trump has repeatedly criticized current Fed chair Jerome Powell for failing to quickly lower interest rates and has indicated that he wants to see someone in that position who is ready for a more decisive easing of monetary policy.
According to Bloomberg sources, the most likely successor to Powell is Kevin Hassett, director of the White House National Economic Council and Trump's chief economic advisor.
Hassett himself referred to the reports of his appointment as 'rumors' during a broadcast, declining to answer directly regarding leadership in the race. However, he used the broadcast to point to the positive market reaction to this news — a subtle hint to critics worried about his excessive loyalty to the president.
Trump trusts Hassett and considers him an ally in the pursuit of aggressively lowering interest rates. Rumors about his possible appointment have already led to U.S. 10-year Treasury yields briefly dipping below 4%.
Treasury Secretary Scott Bessen, overseeing the selection process, reported last week that Trump may announce the nominee's name before Christmas.
In addition to Hassett, the final list of candidates includes Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, and BlackRock executive Rick Rieder.
Any candidate will have to undergo Senate confirmation. If the choice falls on a person outside the current Fed board, they must also be confirmed for a 14-year term as governor. Jerome Powell's term as chairman expires in May.
