Trump names likely successor to Powell

Over the last few months, Donald Trump has been jousting with Fed Chairman Jerome Powell.

It was originally assumed that Treasury Secretary Bessent would take over the role, but he disqualified himself.

Now we know the individual likely to succeed Powell at the end of his term.

Resign!

Trump has been after Powell to resign for years, as he believes Powell is being too restrictive when it comes to lowering the federal interest rates.

Trump knows if he fires Powell, it will be contested, so he keeps putting pressure on him to resign.

When Trump was asked about Powell’s resistance to lowering the rates, he stated, "Well, then he should resign immediately. We should get somebody in there that's going to lower interest rates. It's OK with me, I think he's terrible. I think, look, we're paying – I call him Too Late. T-o-o, too late, like 'Too Tall' Jones for the Dallas Cowboys. Too Late.

"He's always late. But he wasn't late with Biden before the election, he was cutting them like crazy. It didn't help too much, did it? But he was cutting them like crazy before the election with Kamala and Biden. He was trying to get them in, I guess. I don't know, he was recommended by somebody who worked for me.”

Bessent is Out

Bessent had been very vocal about doing whatever Trump wanted if he were appointed as the Fed Chair, but Trump recently revealed that Bessent told him he did not want the post.

Trump explained, “Well, I love Scott, but he wants to stay where he is.

“I asked him just last night, ‘Is this something you want?’ [Bessent said], ’Nope, I want to stay where I am. He actually said, ‘I want to work with you.’ It’s such an honor. I said, ‘That’s very nice. I appreciate that.’”

Trump explained that he did have four other names for consideration, only he did not reveal who they were, until now.

Trump’s Guy

Trump has picked Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to fill the open seat on the Board.

Trump stated, “It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026.

“In the meantime, we will continue to search for a permanent replacement. Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!”

I think it goes without saying that Trump will likely nominate Miran for Fed Chair once Powell’s current term is over, which is next year. Miran would not have been picked if he had not agreed to back Trump’s desire to lower the rate significantly. At least in my humble opinion.