US President Donald Trump announced on Thursday that he intends to reveal the identity of his nominee to head the Federal Reserve (the US central bank) "next week," a move with profound economic implications that is generating cautious anticipation in the global financial and business community.
Details of the upcoming announcement
In a press statement, Trump said, "Sometime next week, we will announce the Federal Reserve Chair," expressing confidence in his choice by saying, "It will be someone who, I think, will do a very good job." The president indicated that this announcement would coincide with other appointments, including prominent figures like "Scott and Howard," a clear reference to Treasury Secretary Scott Bissett and Commerce Secretary Howard Latnick, suggesting the administration's desire to finalize its economic team.
Ongoing criticism of interest rate policies
The president seized the opportunity to renew his sharp criticism of current monetary policy, describing interest rates as still being "too high and unacceptably so." This statement comes at a sensitive time, as Trump has long sought greater influence over the central bank's decisions, arguing that lower interest rates are necessary to stimulate economic growth—a position that has consistently sparked debate about the independence of the monetary institution.
Context of the end of Jerome Powell's term
This move is particularly significant as the term of current Federal Reserve Chairman Jerome Powell is set to end in May. The relationship between Trump and Powell has been marked by public tensions in the past, despite Trump having appointed him during his first term. These developments come after the Federal Reserve decided on Wednesday to hold interest rates steady, following a series of cuts scheduled for three times during 2025, signaling a cautious approach by the bank to inflation.
The importance of the position and its global impact
The position of Federal Reserve Chair is one of the most influential economic posts in the world, as its decisions control borrowing costs not only within the United States but also directly impact emerging markets, the value of the dollar, and global trade. Analysts are closely scrutinizing the next nominee, who will face the difficult task of balancing curbing inflation and maintaining strong employment levels while navigating potential political pressures from the White House.
As the announcement date approaches, investors and monetary policymakers around the world are turning their attention to Washington to find out who will lead the world’s largest economy in the coming period, and how their policies will affect the future of global monetary policy.
