Trump's Search for a New Federal Reserve Leader: Powell's Days Numbered

In a sharp critique of current Federal Reserve Chairman Jerome Powell, U.S. President Donald Trump has unveiled a shortlist of potential successors, as Powell's term nears its end in May. Speaking to business leaders in Tokyo during his Asia tour, Trump lambasted Powell, calling him 'incompetent' and stating a new chairman will soon be appointed.

The President expressed a preference for Scott Bessent, though he acknowledged that Bessent's current role as Treasury secretary made him an unlikely choice. Five candidates, including economic adviser Kevin Hassett, former Fed Governor Kevin Warsh, and others, are being considered. This decision will be made by December, said Bessent to reporters on Monday.

Meanwhile, Federal Reserve policymakers are expected to slash U.S. short-term borrowing costs for the second time this year, an effort aimed at buffering the labor market against further declines. The anticipated policy decision underscores the urgency of appointing a new Fed leader equipped to navigate these economic challenges.