Trump's team expands search for Fed chair to about 10 names
WASHINGTON : US President Donald Trump's team is reviewing new contenders to lead the Federal Reserve once chair Jerome Powell's term ends in May, including a long-time economic consultant and a past regional Fed president, the Wall Street Journal reported on Friday.
The 10 or so people on the newly expanded list include former St. Louis Fed president James Bullard and Marc Sumerlin, a former economic adviser to president George W. Bush, WSJ said, citing officials. Trump last week said he had narrowed the list to four.
National Economic Council director Kevin Hassett and former Fed governor Kevin Warsh remain under consideration, along with current Fed governor Christopher Waller, WSJ said.
Reuters has previously reported that these three are candidates but could not immediately verify the rest of the report.
Trump has been criticising Powell all year for not cutting rates, building on disappointment with the Fed chief that emerged during his first term as president shortly after he elevated Powell to the Fed chair role.
It was not clear what a broader list of candidates would mean for the timing of an appointment. Treasury secretary Scott Bessent is helping lead the search.
The president moved quickly to name an ally to the Fed Board this week after Fed governor Adriana Kugler, a Biden appointee who did not support rate cuts, unexpectedly resigned as of the end of this week.
Council of Economic Advisers Stephen Miran will serve out the remaining months of Kugler's term, which ends on Jan 31.
Trump has indicated a search continues for someone who could fill the Fed Board role for a 14-year term beginning Feb 1.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
11 minutes ago
- The Star
S&P 500, Nasdaq close at record closing highs
The Dow rose 483.52 points, or 1.10%, to 44,458.61, the S&P 500 gained 72.31 points, or 1.13%, at 6,445.76 and the Nasdaq advanced 296.50 points, or 1.39%, to 21,681.90. NEW YORK: The S&P 500 and the Nasdaq scored record closing highs on Tuesday, as news that July inflation rose broadly in line with expectations bolstered bets on a Federal Reserve interest rate cut next month. The Labor Department said the Consumer Price Index (CPI) rose 0.2% on a monthly basis in July, while annual inflation came in slightly below forecasts, drawing calls from US President Donald Trump to lower interest rates. Yields on shorter-dated Treasury bonds – a reflection of interest rate expectations – slipped and rate futures showed traders are giving an 88.8% chance that the Fed could lower rates by about 25 basis points in September. "The CPI data is supportive for equities overall, getting some good news with the Fed looking more on track to cut in September and potentially more transitory inflation," said Katherine Bordlemay, co-head of client portfolio management, fundamental equities at Goldman Sachs Asset Management. "The first thing I'd guide is continue to lean into the theme of the big are getting bigger. We continue to have conviction around mega-tech and technology." Alphabet shares rose 1.2% as Perplexity made a US$34.5 billion cash offer to buy the company's Chrome browser. Intel Corp climbed 5.6% after Trump said he met its CEO, Lip-Bu Tan, on Monday, praising Tan and calling the meeting "very interesting." Last week, Trump demanded Tan's immediate resignation, calling him "highly conflicted" over his ties to Chinese firms. The Dow Jones Industrial Average rose 483.52 points, or 1.10%, to 44,458.61, the S&P 500 gained 72.31 points, or 1.13%, at 6,445.76 and the Nasdaq Composite advanced 296.50 points, or 1.39%, to 21,681.90. The quality of economic data remains a concern weeks after Trump fired the head of the Bureau of Labor Statistics following downward revisions to previous months' nonfarm payrolls counts. Markets are monitoring developments around Trump's nominee, E.J. Antoni, to the bureau commissioner post and potential candidates for the Fed's top job. "This is still early innings of this process and just as the Fed will be beginning to cut rates in the autumn, that's when the inflation data will probably start to be registering some of these more direct tariff price increases and it's going to complicate the rate-cutting decision," said John Velis, a macro strategist at BNY. Relief came as the US and China extended their tariff truce until November 10, staving off triple-digit duties on each other's goods. US stocks have rallied in recent weeks on the back of strong tech earnings, easing trade tensions, and increased rate cut expectations. Inflows into US stocks last week were the largest in two years, BofA Global Research data showed. The Russell 2000 index, tracking small-cap companies, advanced almost 3%. An index tracking airline stocks surged 8.87%, its biggest one-day rise in over a month after data showed airfares rose 4% in July. Bank stocks rallied, with the S&P 500 Banks index up 2.1%, as analysts said a steepening yield curve could help bank earnings as lenders could borrow cheap and lend at a higher rate. Cardinal Health dropped 7% after the drug distributor said it will buy healthcare management firm Solaris for US$1.9 billion. Advancing issues outnumbered decliners by a 4.26-to-1 ratio on the NYSE. There were 484 new highs and 60 new lows on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 2.69-to-1 ratio. The S&P 500 posted 27 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 104 new highs and 96 new lows. Volume on US exchanges was 16.40 billion shares, compared with the 18.3 billion average for the full session over the last 20 trading days. — Reuters
New Straits Times
11 minutes ago
- New Straits Times
US stocks hit records on steady inflation, China trade truce
NEW YORK: Global stocks mostly rose on Tuesday, with Wall Street indices ending at fresh records as US inflation data showed a still-subdued impact from US President Donald Trump's tariffs. That, combined with Trump extending by 90 days a trade truce with China, cheered investors. New York jumped after the US consumer price index (CPI) reading for July showed annualised inflation at 2.7 per cent, unchanged from a month earlier. Both the S&P 500 and Nasdaq finished at fresh records. European markets were likewise boosted by the US inflation numbers, with all but Frankfurt rising. While the headline CPI figure was lower than expected, underlying price increases indicated that Trump's tariffs were nevertheless starting to ripple through the US economy. Core inflation, which strips out volatile costs such as food and energy, accelerated in July to the fastest pace in six months. "Inflation from tariffs is beginning to feed into the core figure but not yet at the stage that is a major concern for markets," said Lindsay James, investment strategist at Quilter, a wealth management firm. The dollar slipped against major currencies. Investors calculated that the CPI data was not enough to sway the US Federal Reserve away from an expected interest rate cut next month. The US central bank, which has an inflation target of two per cent, also has to weigh other recent data, including signs in the labour market of slower economic growth. Trump has relentlessly pressured Jerome Powell to ease monetary policy, reiterating his call for the Fed Chairman to cut rates immediately in a sneering post on his Truth Social platform. Trump said he may allow "a major lawsuit" against Powell for his oversight of renovations of Federal Reserve buildings. Katy Stoves, investment manager at Mattioli Woods, warned however: "This gentle cooling of the economy will certainly not justify a cut of interest rates to one per cent as President Donald Trump is calling for." Oil prices were lower, after OPEC's latest growth projections maintained estimates for 2025. The oil cartel raised its demand forecast for 2026, signalling it expected stronger global activity next year. Trump's announcement on Monday that he would put off reimposing sky-high levies on China to November, to give more time for talks, buoyed market sentiment. Stock markets in Asia rose on the news, with Tokyo hitting a record. Investors are also awaiting a summit between Trump and Russian leader Vladimir Putin on Friday, with the US president playing down the possibility of a breakthrough in ending the war in Ukraine. In corporate news, China's real estate giant Evergrande Group said on Tuesday it will delist from Hong Kong Stock Exchange in the wake of its 2021 default. The company is emblematic of a years-long crisis in China's property market. Intel rose 5.5 per cent after CEO Lip-Bu Tan met with Trump, who praised the executive after previously calling for him to step down. New York - Dow: UP 1.1 per cent at 44,458.61 (close) New York - S&P 500: UP 1.1 per cent at 6,445.76 (close) New York - Nasdaq: UP 1.4 per cent at 21,681.90 (close) London - FTSE 100: UP 0.2 per cent at 9,147.81 (close) Paris - CAC 40: UP 0.7 per cent at 7,753.42 (close) Frankfurt - DAX: DOWN 0.2 per cent at 24,024.78 (close) Tokyo - Nikkei 225: UP 2.2 per cent at 42,718.17 (close) Hong Kong - Hang Seng Index: UP 0.3 per cent at 24,969.68 (close) Shanghai - Composite: UP 0.5 per cent at 3,665.92 (close) Euro/dollar: UP at US$1.1677 from US$1.1615 on Monday Pound/dollar: UP at US$1.3501 from US$1.3432 Dollar/yen: DOWN at 147.77 yen from 148.15 yen Euro/pound: DOWN at 86.45 pence from 86.48 pence
Malay Mail
11 minutes ago
- Malay Mail
‘Taxation without representation': The ongoing fight for Washington DC's full democratic rights
WASHINGTON, Aug 13 — The capital of the world's leading superpower is a city unlike any other in the United States — not just in symbolism but in its legal and political structure. President Donald Trump's repeated threats to impose his will on the city has brought its unique status back into the spotlight. Washington DC is a bustling urban centre with schools and businesses serving 700,000 residents—but is also the seat of national power, home to the White House, Capitol and Supreme Court. This dual identity often places local interests at odds with federal oversight, in a city where democracy is on display daily, even as the locals themselves lack full democratic rights. Unlike the 50 states, the city operates under a unique relationship with the federal government that limits its autonomy and grants Congress extraordinary control over local matters. The overwhelmingly Democratic city faces complaints from Republican politicians that it is overrun by crime, plagued by homelessness and financially mismanaged. 'Taxation without representation' The city was established by the constitution in 1790 as a federal district, not part of any state as the Founders wanted the capital to be independent of any single state's influence. The land for the district was ceded by Maryland and Virginia, although the Virginia portion was returned in 1847. Because of its federal status, Washington is governed under the authority of Congress. Residents pay federal taxes, but lack voting representation in the House and Senate—earning the city the long-standing slogan seen on bumper stickers: 'Taxation without representation.' Limited home rule In 1973, Congress passed the Home Rule Act, allowing residents to elect a mayor and a city council, although laws passed by the body are subject to congressional review and veto. Congress also controls the city's budget, which has led to political tensions when lawmakers have blocked local initiatives on marijuana legalization, reproductive rights and police funding. Push for statehood Supporters of making the US capital the nation's 51st state have framed their cause as an effort to end a glaring American civil rights violation. Despite having no say in congressional votes, the city's residents fight and die in US wars and face a higher federal tax burden than people in the 50 states. Statehood advocates argue that the residents—who are more numerous than the populations of Vermont or Wyoming—deserve full congressional representation and local autonomy. In 2021, the House of Representatives passed a bill to make the District of Columbia the 51st state, but it stalled in the Senate. Opponents argue that the city was never intended to be a state and that making it one would require a constitutional amendment. A constitutional amendment ratified in 1961 gave the city votes in the presidential electoral college. Mixed crime picture Washington is not among the top 10 US cities for the rate of violent offenses, although it has historically struggled with crime. The 1990s saw soaring homicide rates, peaking at around 480 deaths in 1991, during a crack cocaine epidemic. Crime dropped significantly in the 2000s but then surged again after the Covid-19 pandemic. In 2023, homicides reached a 20-year high with 274 lives lost—a 36 per cent increase on the previous year. However, preliminary data for 2024 indicates a substantial drop, with homicides down by 32 per cent compared to 2023, according to the Metropolitan Police Department. The decrease has contributed to an overall reduction in violent crime in the city, which is down 35 per cent from 2023. Melting pot As of the 2020 Census, Washington's population stood at 683,000, although it is now estimated at 702,000. A racially diverse melting pot, Washington is around 44 per cent Black and 37 per cent white, with Hispanic and Asian Americans making up much of the rest of the population, according to Census data. It is also one of the best educated and richest urban areas in the country, though stark income inequality persists between neighborhoods. — AFP
