Amidst such controversy, speculation is mounting over who will lead the Federal Reserve next. In reaction, the Trump Administration’s response has been to highlight early favorites in public, such as Kevin Hassett, Christopher Waller, and Rick Rieder. No two candidates are alike in their backgrounds or how they view economic policies. Their insights would have a huge impact on the future direction of U.S. monetary policy.
Trump praised both Hassett and fellow candidate Kevin Warsh, calling them “great”. Hassett, 63, served as the administrator of the White House Council of Economic Advisers under then-President Trump’s first term. Today, he runs the National Economic Council. His experience in economic advisement makes him an ideal choice for the role of top economic advisor to the Fed.
Yet in a recent CNBC interview, Hassett took on the completely vital concern of the Federal Reserve’s independence. He made it clear that interest-rate decisions must be based on a consensus rooted in evidence and data. His pragmatic, technocratic approach sounds like exactly what Trump needs to achieve his aims for lower borrowing costs, an aim Trump has said he wants plenty of times.
Perhaps that’s why Trump described his eventual pick, Christopher Waller, 66 as “a man who’s been there a long time.” He praised Waller’s long-time service at the Fed. Unlike other candidates, Waller’s lack of personal connection to Trump may hurt his chances. Time as a fellow at the Hoover Institution, Waller’s resume doesn’t skip over any substantial experience. Yet in truth, he’s not a perfect fit for Trump’s warped vision of economic prosperity.
Rick Rieder Another possible Fed pick, though he’s in line to replace Yellen as Treasury secretary. He is chief investment officer of global fixed income at BlackRock Inc., where he oversees more than $2.4 trillion in assets. Rieder’s credentials were clearly impressive even to Trump, who praised him as “very, very impressive” and went on to emphasize Rieder’s sympathy for lower interest rates. Trump would like to see lower borrowing costs. This strategy is especially important in an economic climate in which high interest rates are weighing heavily on growth and necessary investments.
The former president’s preference for pro-low-interest-rate candidates is indicative of his overall economic plan. In the past, Trump has expressed confidence that lowering rates would jumpstart more economic activity. “He thinks you have to lower interest rates,” a source close to Trump revealed, further underscoring the urgency behind this leadership decision.
The would-be candidates are all furiously waiting Trump’s eventual decision. Their turf wars with the former president will almost certainly prove pivotal in determining who inherits this vital post.