The search for Jerome Powell’s successor at the head of the Federal Reserve does not stop, especially now that the economy is giving clear signs of slowing down, who worry the White House and the staff of President Trump. The Treasury Secretary Scott Beesent, on a mandate received by the President, is still looking for possible candidates, while the next FOMC meeting is approaching, which should finally proceed with a cut of interest rates.
Bessent met three “ex” of the Fed
In the last few days, Beesent has met three former Fed officials, the two former governors Lawrence Lindsey and Kevin Warsh and the former president of the Fed of St. Louis James Bullard. And it will await the end of next week, because of the silence imposed on the occasion of the FOMC meetings, to listen to some of the current members of the Central Bank.
There are three favorites of Trump
In fact, the Treasury owner would like to add one or two candidates for the names made by President Trump, including the former governor of the Fed Kevin Warsh, the director of the National Economic Council Kevin Hassett and the current governor Christopher Waller. Bessent is taking into consideration a larger group that includes 11 economists, including some ex and current members of the Fed and other experts. The mandate of President Jerome Powell expires in May 2026 and, although he can remain in office for another two years as a governor, it is certain that he will be replaced in his current assignment.
We need a reform of monetary policy
Bessent is also invoking a reform of the Federal Reserve, which allows first of all to lighten the huge bond portfolio present in its budget, which is worth 6,000 billion dollars between treasure titles and securities guaranteed by mortgage, and to change the standard procedures with which monetary policy decisions are made. In fact, the Treasury Secretary is exploring a large reform, which allows the Fed to manage a more complex situation such as the current one.
“The Fed must change course, its standard tool kit has become too complex to manage, with uncertain theoretical bases”
Bessent recently said.
Drift work market
On the other hand, the numbers of the job market emerged recently leave no room for doubt that the economy has undergone a clear deterioration. Just a couple of days ago, the Bureau of Labor Statistics corrected the relative growth of the twelve months in March 2025 of 1 million units. And the data follows the abrupt braking of the jobs recorded in August, equal to only 22mia units and well below expectations. Data that are not justified by the inflation numbers, which came out yesterday, which is confirmed under control at 2.9%.
