The Wall Street Journal is reporting that the Pres. team is expanding the search for the new Fed chair. According to the article:
The search is being led by Treasury Secretary Scott Bessent will lead the vetting process, conduct initial interviews, and present a final shortlist to President Trump.
The inclusion of former St. Louis Fed Pres. James Bullard seems a bit out of character in some ways, but in other ways not so “Trump-like”.
If Trump wants someone who is more anticipatory whether it is dovish or hawkish, Bullard would be the man.
However, if Trump wants someone who will support a drive to sharply lower rates, I am not sure Bullard would be the choice.
My feeling is Trump wants lower rates no matter what and let the inflation cards fall where they may (he could always strong-arm companies from raising prices – or so he anticipates). If he can miraculously lower the price of eggs (breed more Chickens to replace the ones who had to be killed from bird flu), he could do anything.
Trump wants to own the Fed. As a result, I think the article is a smoke screen to make it seem like he is doing his diligence before appointing his “yes” man.
