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Becente looks for the next Federal Reserve Chairman, a "Game of Thrones" that will affect the world
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Hello everyone, today XM Forex will bring you "[XM Group]: Becente looks for the next Federal Reserve Chairman, a "Game of Thrones" that will affect the world." Hope it will be helpful to you! The original content is as follows:
U.S. Treasury Secretary Scott Bescent said on Wednesday (September 24) that the Trump administration is looking for an "open thinking" candidate to serve as the next chairman of the Federal Reserve, and he has interviewed 11 candidates to replace Jerome Powell.
Bestert said in an interview with Fox Business Channel's "Maria Morning Show": "Whenever I interview a potential Fed chairman candidate, everyone will ask me what traits I am looking for. In fact, I only need a candidate who is open-minded and not indulged in the past but looks to the future."
The candidate lineup is hidden variables, and the White House and the Treasury Department have different orientations
Bestert is expected to xn--xm-6d1dw86k.complete the first round of interviews in the first week of October. He said on Wednesday he was surprised by some of the candidates' outstanding performances but declined to name them. The Treasury Secretary said plans to submit a streamlined list of the strongest candidates to Trump.
These latest statements show that as the White House continues to look for someone to take over Powell’s current position (his chairman term will end in May next year), Becent is expanding his sphere of reference.
It is not clear how this will affect the final candidate. Trump has said he will narrow the range of candidates to three: former Fed director Kevin Wash, current Fed director Christopher Waller, and current National Economic xn--xm-6d1dw86k.commission director Kevin Hassett.
On the other hand, Becent added more candidates to the group. Last week he specifically praised former St. Louis Fed Chairman Jim Brad, who met for about two hours as part of a Fed presidential inspection. Besent praised himExperience, Brad is a monetary policy expert, has a deep academic background and is very familiar with the Fed's institutional operations.
xn--xm-6d1dw86k.comBC also reported last week that Rick Reed, head of the bond department of Blackstone Group, was also exposed to have been interviewed.
The Treasury Secretary sharply xn--xm-6d1dw86k.commented on the Federal Reserve's shortcomings and called for structural reforms
Bester is in charge of finding the next Fed chairman candidate, and he has expressed that he has no intention of holding the position. At the same time, he continues to speak out on how the Fed should reform.
He made a series of criticisms, a Wall Street Journal xn--xm-6d1dw86k.commentary earlier this month ranged from the Fed’s “task spread” and “institutional bloated” to a slow response to interest rate action, which he believed put the Fed behind the situation, when the labor market had begun to slow down.
Bestert wrote that the Fed needs to “change the course”, “rebuild its credibility as an independent institution” and conduct “honesty, independent and nonpartisan reviews.”
He added: "Overuse of unconventional policies, spreading mission scope and bloated institutions are threatening the Fed's independence, and the Fed must change its course."
Bester did not stop criticizing Powell, who has been repeatedly criticized by the White House for failing to cut interest rates as soon as possible. The Fed cut its benchmark interest rate by 25 basis points last week, the first rate cut in 2025.
Bester told Bartyromo on Wednesday morning: "The interest rate limit is too strong and it must be lowered. I am a little surprised that the Fed Chairman has not released any signal to show that we will cut interest rates by at least 100 to 150 basis points by the end of the year."
Several internal discrimination within the Federal Reserve is intensifying, and the game of policy paths is intensifying. Trump's latest Fed Director Stephen Milan was the only objector in the rate cut resolution last week, and he advocated a larger rate cut at the time. Other officials predict that interest rate cuts will only be cut twice in 2025, highlighting the cracks in the decision-making level.
Michel Bowman, another Fed director appointed by Trump, said Tuesday that she was worried that the Fed might lag behind the situation if it did not adopt more radical easing policies.
San Francisco Fed Chairman Mary Daly said Tuesday that further rate cuts were "very likely" necessary, and she "fully supported" the 25 basis point cut last week's decision to cut interest rates.
She added: "Looking forward, as we provide necessary support to the labor market while restoring price stability, further policy adjustments are likely to be needed, which is reflected in our latest forecasts released last week. But these are forecasts, not xn--xm-6d1dw86k.commitments." This divergence indicates that the future monetary policy path will face fierce game.
Analysis of the potential impact of the US dollar
Political uncertainty will cause investors to reduce their bets on the US dollar, or seek other relatively stable currencies to hedge, thus bringing selling pressure to the US dollar.
Treasury Secretary Bescent Besent's remarks are extremely directive. He not only criticized the current chairman Powell for his slow action, but also made it clear that heIt calls for further interest rate cuts before the end of the year. Interest rates are the core of currency prices, and faster and larger interest rate cuts are expected to directly weaken the interest rate attractiveness of the US dollar and cause capital to flow out of US dollar assets.
Differences within the Federal Reserve are "heating", and there are obvious policy path differences between Trump's appointed directors (Milan, Bowman) and relatively more technocratic officials (such as Daly). The market is worried that the Fed's independence is being eroded by politics. A politicized central bank will have a decrease in its policy credibility and the long-term value of its currency will be questioned.
The above content is all about "[XM Group]: Becente looks for the next Federal Reserve Chairman, a "Game of Thrones" that will affect the world". It is carefully xn--xm-6d1dw86k.compiled and edited by the editor of XM Forex. I hope it will be helpful to your transactions! Thanks for the support!
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