Overview

• President Trump said he will only appoint a Federal Reserve chair willing to slash interest rates, setting an explicit litmus test for candidates.
• He branded Jerome Powell “stupid” and a “stubborn mule” after the Fed resisted faster rate reductions.
• The dollar fell to its weakest level in three years following reports that Trump may name a “shadow” Fed chair this fall.
• Treasury Secretary Scott Bessent suggested a nomination could come by October or November, though the White House says no decisions are imminent.
• Potential successors include Treasury Secretary Scott Bessent, former Fed governor Kevin Warsh, current governor Christopher Waller, National Economic Council head Kevin Hassett and former World Bank president David Malpass.