Trump officials cast a wider net for Powell replacement at Fed
The selection process is especially challenging because whoever fills the seat will have to balance the central bank's inflation-fighting credibility with Trump's expectation that his calls for lower rates will be taken into consideration.
The new chair will also lead an institution with thousands of employees tasked with not only setting interest rates, but also regulating banks and overseeing the payments system.
Jefferson, an appointee of former President Joe Biden, has been a less visible presence than other recent vice chairs at the Fed but has consistently garnered bipartisan support. He was confirmed by the Senate as the central bank's No. 2 in an 88-10 vote.
Many of the people under consideration have publicly said the Fed should cut borrowing costs — Waller and Bowman, both Trump appointees, dissented from a decision to hold rates steady last month — but have also emphasized the importance of the institution's insulation from short-term politics.
Bullard said on CNBC on Tuesday that he would accept the job 'if we set it up for success, if we protect the value of the dollar, [to] be the reserve currency — that'll give us lower interest rates over time, if we aim for low and stable inflation, and if we can respect the independence of the institution under the Federal Reserve Act.'
Bullard and Sumerlin's candidacies were first reported by the Wall Street Journal, and the new internal Fed candidates were earlier reported by Bloomberg News.
Treasury Secretary Scott Bessent confirmed in a CNBC interview last week that a formal process for choosing Powell's successor has kicked off but did not a provide a timeline for when the choice might be made.
In the meantime, Trump has nominated his chief economist, Stephen Miran, to an open position on the Fed, though the term for that slot ends in January. Miran has argued that the central bank should be subject to more political control.
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After D.C., Trump says he might use the National Guard to ‘take back' other cities. Can he actually do that?
When President Trump announced his plan Monday to send 800 National Guard troops to Washington, D.C., to crack down on what he described as 'crime, bloodshed, bedlam and squalor' in the nation's capital, he also issued a warning to other cities around the country. "We're going to take back our capital," Trump said. "And then we'll look at other cities also.' But can Trump actually send federal forces elsewhere? And what cities might he target? Here's everything you need to know about the president's warning. What did Trump say about sending the National Guard into other cities? During his news conference on Monday, Trump singled out Chicago, Los Angeles, New York, Baltimore and Oakland, Calif. as 'other cities also that are bad, very bad.' 'They're so far gone,' he continued. 'We're not going to let it happen. We're not going to lose our cities over this. And this will go further. 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As you may remember from elementary school, D.C. isn't a state. It isn't part of any other state either. It doesn't have a constitution of its own. Instead, D.C. is what's known as a 'federal district,' and it's been mostly under the jurisdiction of the U.S. Congress since its founding in 1791. In 1973, Congress passed the Home Rule Act, which allowed D.C. residents to elect their own mayor and council members. But the law doesn't give D.C. complete autonomy. Even now Congress controls its budget. Congress also has the power to review and block local legislation. The president, meanwhile, still appoints D.C.'s judges — and he still leads its National Guard. He can also take control of the District's police force by invoking Section 740 of the Home Rule Act, which is precisely what he did Monday. But Trump doesn't have the same powers across the rest of the country. Under current law, governors are in charge of each state's National Guard and the police are largely controlled locally. Trump has already challenged some of these rules. Over the objections of state and local officials, he deployed nearly 5,000 National Guard members and U.S. Marines to Los Angeles in June after a new round of ICE workplace raids sparked protests marred by sporadic violence. California Gov. Gavin Newsom swiftly sued the administration to end the mobilization, claiming that Trump was violating the Posse Comitatus Act of 1878, which prohibits the president from deploying the armed forces to participate in domestic law enforcement operations unless he declares that an insurrection is underway. A federal judge agreed with Newsom, but an appeals court blocked that ruling. Now Trump and Newsom are facing off in a three-day trial that began on Monday in San Francisco to determine whether Trump has the authority to do what he did in L.A. in other cities such as Chicago and New York. A verdict is expected Wednesday. What does Trump hope to accomplish by mentioning other cities? 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Trump Signs Order Allowing Americans to Add Crypto in Their 401Ks. Here Are 3 of the Top-Rated Coins to Buy Now.
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Some good inflation news: Car insurance is falling back in line
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