Trump May Shake Up the Fed... "Drafting List to Reshape Leadership Including Powell"

Advisors to President-elect Donald Trump, who is set to be inaugurated on the 20th, are reportedly drafting a list to overhaul the leadership of the Federal Reserve (Fed). With Michael Barr, the Vice Chair for Supervision, announcing his resignation, they are considering successors for both him and Jerome Powell, the Chair.

On the 9th, Bloomberg reported, citing sources, that Michelle Bowman, the Fed's top hawk, is likely to be promoted to the new Vice Chair for Supervision following Barr's resignation. Barr announced his resignation on the 6th (local time), with his term ending in February, and his successor will be appointed by the new Trump administration.

Additionally, Trump's advisors are said to be drafting a list of candidates to succeed Jerome Powell, whose term as Chair ends in May next year, while narrowing down candidates for the Vice Chair. Sources revealed, "Trump's advisors are closely monitoring Fed officials' statements on interest rates, adding or removing names from the candidate list."

Candidates to succeed Powell include Kevin Hassett, currently serving as the White House National Economic Council Director, Larry Lindsey and Mark Sumerlin, who served in the White House during George W. Bush's presidency, former World Bank President David Malpass, former Fed Governor Kevin Warsh, and Vice Chair candidate Bowman.

Previously, President-elect Trump criticized the Fed's significant rate cuts, calling it a "political move to support someone."