Trump rules out Bessent for Fed chair
In an interview with CNBC, Trump said Fed Governor Adriana Kugler's decision to vacate her seat early was a "pleasant surprise." The departure of Kugler, whose term would have ended on January 31, appears to have accelerated Trump's planning for the U.S. central bank, giving him an immediate opening to fill with a person who could also be promoted to the top policymaking role when Fed Chair Jerome Powell's term ends in May. "It'll be one of four people," Trump said, adding that he considered both current White House economic adviser Kevin Hassett and former Fed Governor Kevin Warsh as "very good" possibilities. He did not name the other two, but is reportedly considering current Governor Christopher Waller, who has advocated rate cuts but not at the pace or extent Trump wants. "There are numerous people that are qualified," Trump said. "I am going to be announcing that very shortly," the president said in reference to naming a replacement for Kugler, who was appointed to the Fed's board by former President Joe Biden. Trump said Bessent would not be in the running for the position because he wants to remain in the top Treasury job. The nominee would, at least initially, serve the few months remaining in Kugler's term. But Trump could be explicit that he plans for that person to then be nominated to a full 14-year term after that time, and to also be his choice to replace Powell when the Fed chief's term expires next May - giving his nominee several months and several policy meetings to begin to influence the policy debate.
Productivity Tool
Zero to Hero in Microsoft Excel: Complete Excel guide
By Metla Sudha Sekhar
View Program
Finance
Introduction to Technical Analysis & Candlestick Theory
By Dinesh Nagpal
View Program
Finance
Financial Literacy i e Lets Crack the Billionaire Code
By CA Rahul Gupta
View Program
Digital Marketing
Digital Marketing Masterclass by Neil Patel
By Neil Patel
View Program
Finance
Technical Analysis Demystified- A Complete Guide to Trading
By Kunal Patel
View Program
Productivity Tool
Excel Essentials to Expert: Your Complete Guide
By Study at home
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
"A lot of people say, when you do that, why don't you just pick the person who is going to head up the Fed? That's a possibility too," Trump said. The president has been critical of Powell for not cutting interest rates since Trump returned to power in January, and contemplated trying to fire him, even as Fed policymakers balance evidence of both a slowing economy and a weakening job market against the fact that inflation remains well above the central bank's 2% target and is expected to move higher.
The Fed is charged by Congress to maintain stable prices and maximum employment, and is potentially facing a situation where the two goals conflict with each other - posing a painful set of tradeoffs. The nominee to fill Kugler's seat will need to be confirmed by the Senate, and would require another Senate vote for a full 14-year term early next year. The nomination for the next Fed chief would require a separate Senate confirmation process.
'ANOTHER LEVEL OF PROBLEMS' Kugler's departure was announced the same day that Trump, angered over data that showed job growth slowing in the first months of his administration, fired Bureau of Labor Statistics Commissioner Erika McEntarfer while alleging without evidence that BLS was manipulating the jobs data to make him look bad. Economists have warned since Trump returned to the White House in January that his combination of import tariffs and erratic trade policy would likely lead to a labor market slowdown and higher inflation, a broadly shared outlook that has been among the factors keeping the Fed from lowering rates until the inflation impact becomes clearer. The central bank last week held its policy rate steady in the 4.25%-4.50% range, though Waller dissented on the grounds that the inflation risk from tariffs appeared modest at best, while the job market and growth in general appeared to be weakening. The release on Friday of the jobs report for July, with weak monthly employment gains and downward revisions to prior months, appeared to validate those concerns and led to increased market bets the Fed would cut rates at its September 16-17 meeting. The firing of the BLS commissioner touched off a global wave of concern about the continued integrity of U.S. government data, with Trump's actions being given a fire-the-messenger interpretation by much of the economics and statistics community. The president's choice now to head the statistics agency and potentially to lead the Fed will be scrutinized all the more carefully, said Michael Strain, director of economic policy studies at the conservative American Enterprise Institute. "Imagine if one of your concerns is that there's a lackey in charge of the agency and the numbers are fake. That's ... another level of problems," Strain said of the BLS. "Maybe he sees this independence thing really matters. Maybe he's got somebody from the outside saying 'Look, Mr. President, if you appoint somebody who's perceived to be a lackey as the Fed chair, take the BLS freakout and multiply by 1,000."
Live Events
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
28 minutes ago
- India Today
Which countries face Trump's new US tariffs? Full list of import rate changes
US President Donald Trump has announced sweeping new tariffs—some as high as 41 per cent—on imports from dozens of countries, invoking emergency powers to address what he calls 'persistent and damaging' trade the newly announced 25 per cent additional tariff on imports, India has now joined Brazil at the top of the list of countries facing the highest import taxes under the Trump administration's adjusted tariff regime, with both countries now facing a total levy of 50 per latest move, announced on Wednesday, is a direct response to what Washington described as India's 'continued' import of Russian oil, despite previous warnings. Brazil, which was previously subject to a 10 per cent reciprocal tariff, now faces an additional 40 per cent levy. The move, linked to the prosecution of former President Jair Bolsonaro, brings its total tariff burden in line with India's at 50 per White House order, issued just hours before the original deadline on August 7, lists increased import duty rates for 69 US trading partners, taking effect the same day. However, there is a 21-day window before the newly announced additional 25 per cent tariff on Indian imports comes into THE FULL LIST OF COUNTRIES FACING ADJUSTED IMPORT TARIFFS:India: 50%Brazil: 50%Syria: 41%Laos: 40%Myanmar: 40%Switzerland: 39%Iraq: 35%Serbia: 35%Bosnia and Herzegovina: 30%Libya: 30%South Africa: 30%Brunei: 25%Kazakhstan: 25%Moldova: 25%Tunisia: 25%Indonesia: 19%Cambodia: 19%Malaysia: 19%Pakistan: 19%Philippines: 19%Bangladesh: 20%Sri Lanka: 20%Taiwan: 20%Vietnam: 20%Nicaragua: 18%Afghanistan: 15%Algeria: 15%Bolivia: 15%Botswana: 15%Cameroon: 15%Chad: 15%Costa Rica: 15%Cte d'Ivoire: 15%Democratic Republic of the Congo: 15%Ecuador: 15%Equatorial Guinea: 15%Fiji: 15%Ghana: 15%Guyana: 15%Iceland: 15%Israel: 15%Japan: 15%Jordan: 15%Lesotho: 15%Liechtenstein: 15%Madagascar: 15%Malawi: 15%Mauritius: 15%Mozambique: 15%Namibia: 15%Nauru: 15%New Zealand: 15%Nigeria: 15%North Macedonia: 15%Norway: 15%Papua New Guinea: 15%South Korea: 15%Trinidad and Tobago: 15%Turkey: 15%Uganda: 15%Vanuatu: 15%Venezuela: 15%Zambia: 15%Zimbabwe: 15%United Kingdom: 10%Falkland Islands: 10%European Union: 0%–15%- EndsWith inputs from ReutersTune InMust Watch
Mint
28 minutes ago
- Mint
White House confirms Russia proposed Trump-Putin meeting; Date and venue undecided
The White House has confirmed that the idea of a direct meeting between President Donald Trump and Russian President Vladimir Putin was initiated by Moscow. White House Press Secretary Karoline Leavitt told reporters on Wednesday (August 6) that the proposal followed a lengthy meeting in Moscow between Putin and US special envoy Steve Witkoff. 'The Russians expressed their desire to meet with President Trump, and the President is open to meeting with both President Putin and President Zelensky,' said Leavitt. While the statement signaled growing diplomatic momentum, Leavitt did not comment on when or where the potential meetings could take place. An unnamed White House official told The Associated Press that no date or location had been finalised. The official, who spoke on condition of anonymity, said planning remained in early stages. If the meeting materializes, it would mark Trump's first face-to-face with Putin since returning to office in January and a significant milestone in the ongoing three-year war in Ukraine. The Kremlin confirmed that Putin held a three-hour meeting with Steve Witkoff, Trump's special envoy, in Moscow on Wednesday. The discussion came just days before a Friday deadline set by the White House for Russia to agree to a peace deal or face expanded economic sanctions, including secondary sanctions targeting nations that continue to buy Russian oil. 'Everyone agrees this war must come to a close,' Trump posted on Truth Social. 'And we will work towards that in the days and weeks to come.' Trump, who has repeatedly vowed to end the war on 'Day One' of his second term, has spoken with Putin multiple times by phone since January. He has also met Ukrainian President Volodymyr Zelensky at the White House in February and again during Pope Francis' funeral in April. Trump acknowledged speaking to European leaders on Wednesday following what he described as a 'highly productive' meeting between Witkoff and Putin. Zelensky said he had a phone call with Trump after the Moscow meeting and that European leaders joined the conversation. 'It seems that Russia is now more inclined to agree to a ceasefire,' Zelensky said, adding that 'the pressure on Moscow is working.' However, he warned against complacency. 'It is important to make sure Russia does not deceive us or the United States when it comes to the details of a potential agreement,' Zelensky said. The US is expected to announce new sanctions against Russia on Friday if no meaningful progress is made toward peace. The Trump administration had imposed a 10-day deadline following stalled negotiations between Russia, Ukraine, and Western allies. The New York Times first reported the potential for a three-way summit between Trump, Putin, and Zelensky. It was also reported that Trump has informed European leaders of his intent to meet with Putin first, then host a trilateral summit.
Hindustan Times
28 minutes ago
- Hindustan Times
A new immigrant detention partnership nicknamed after Indiana's iconic racetrack inspires backlash
Top Trump administration officials boast that a new state partnership to expand immigrant detention in Indiana will be the next so-called ' Alligator Alcatraz.' A new immigrant detention partnership nicknamed after Indiana's iconic racetrack inspires backlash However, the agreement is already prompting backlash in the Midwest state, starting with its splashy 'Speedway Slammer' moniker. Here's a closer look at the agreement, the pushback and Indiana's role in the Trump agenda to aggressively detain and deport people in the country illegally. Department of Homeland Security Secretary Kristi Noem trumpeted the deal late Tuesday, saying Indiana would add 1,000 detention beds for immigrants facing deportation under a revived federal program. On social media, DHS also posted an altered image of a race car emblazoned with 'ICE,' short for Immigration and Customs Enforcement. The IndyCar-style vehicle is shown rolling past a barbed-wire prison wall. 'If you are in America illegally, you could find yourself in Indiana's Speedway Slammer,' Noem said, likening it to the controversial facility built in the Florida Everglades. She added the new partnership will 'help remove the worst of the worst out of our country.' However, the Indiana deal doesn't involve construction. Federal funds will be used for space at the Miami Correctional Facility in Bunker Hill, roughly 75 miles north of Indianapolis. The prison's total capacity is 3,100 beds, of which 1,200 are not filled, according to Indiana Department of Correction spokeswoman Annie Goeller. Officials did not say when the detentions would start. 'Details about the partnership and how IDOC can best support those efforts are being determined,' Geoller said. The deal is part of the decades-old 287 program, which Trump has revived and expanded. It delegates immigration enforcement powers to state and local law enforcement agencies. Immigrants, attorneys and advocates have raised a number of concerns about the program, including a lack of oversight. The Florida detention facility has prompted lawsuits and complaints about poor conditions and violations of detainees' rights. Authorities have disputed the claims. Republican Gov. Mike Braun first announced the federal partnership on Friday. 'Indiana is not a safe haven for illegal immigration," he said. "Indiana will fully partner with federal immigration authorities as they enforce the most fundamental laws of our country.' The outlandish name quickly drew backlash, notably from the town of Speedway, an Indianapolis suburb which is home to the iconic racetrack that hosts the Indianapolis 500. 'This designation was developed and released independently by the federal agency, without the Town's involvement or prior notice regarding the use of the name 'Speedway,' ' officials with the Indiana town of roughly 14,000 said in a statement. 'Our primary focus remains the well-being of our residents, businesses, and visitors.' IndyCar officials were also caught off guard. 'We were unaware of plans to incorporate our imagery as part of announcement,' IndyCar said, asking that its intellectual property 'not be utilized moving forward in relation to this matter.' The altered image used by DHS featured an IndyCar with the No. 5, the same number as the only Mexican driver in the series. 'I was just a little bit shocked at the coincidences of that and, you know, of what it means,' IndyCar driver Pato O'Ward said Wednesday. 'I don't think it made a lot of people proud, to say the least.' President Donald Trump's border czar Tom Homan said Wednesday that he didn't name the facility. 'But I'll say this, the work of ICE, the men and women of ICE, are trying to do their job with integrity and honor,' he told reporters at the White House. 'I don't want these names to detract from that.' Leaders in the Trump administration have already singled out Indiana as key to their immigration agenda. Braun, a first-term governor and former U.S. senator, has been a strong Trump supporter. In January, Braun signed an executive order directing law enforcement agencies to 'fully cooperate' on immigration enforcement. The nation's newest immigration court opened in Indianapolis earlier this year as a way to address the backlog and divert cases from the busy courthouse in Chicago. Federal and state leaders are also working on plans to use a central Indiana military base, Camp Atterbury, to temporarily house detainees. 'Indiana is taking a comprehensive and collaborative approach to combating illegal immigration and will continue to lead the way among states,' Braun said in a statement Tuesday. Associated Press writer Will Weissert in Washington contributed to this report. This article was generated from an automated news agency feed without modifications to text.
