Introduction to Trump’s appointments
As
Donald Trump’s new administration approaches, speculations about his key appointments are gaining momentum. Among the most discussed names is that of Kevin Warsh, a former member of the Federal Reserve Board, who could be appointed Secretary of the Treasury and later president of the Fed. This move, if confirmed, could have a significant impact on American economic policy
.
Kevin Warsh’s profile
Kevin Warsh is a former investment banker with solid experience in the financial sector. His appointment to the Treasury would represent a return to a role of great responsibility, considering that he has already held important positions within the Fed. However, his candidacy is not yet official, and Trump is known for his unpredictable decisions. Discussions regarding Warsh’s appointment surfaced during a recent meeting at Mar-a-Lago,
but nothing was finalized.
Other candidates in the running
In addition to Warsh, there are other names that circulate in the context of appointments to the Treasury. Among them, Marc Rowan, CEO of Apollo Global Management, and Scott Bessent, a hedge fund manager with academic experience at Yale University. Bessent could initially lead the National Economic Council before moving to the Treasury, depending on internal dynamics. Senator Bill Hagerty and Robert Lighthizer, a former business representative, are also
considered potential candidates.
Tensions with the Federal Reserve
Trump’s appointments are not taking place in a tension-free environment. The relationship between Trump and the current Fed president, Jerome Powell, has been characterized by public clashes and differences of opinion on monetary policy. If the economy shows signs of growth and inflation increases, Powell and the Fed are likely to take steps to curb interest rates, which could unleash Trump’s ire. During his first term, Trump criticized the Fed for not acting quickly enough to stimulate the economy
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The economic implications of appointments
Trump’s choices for the Treasury and the Fed could have significant repercussions on US economic policy. With an expansionary and protectionist fiscal program in mind, Trump could try to influence the Fed to adopt a more accommodative monetary policy. However, the Fed must maintain its independence and find a balance between economic stimulus and inflation control. Tensions between the White House and the Fed could intensify, creating a complex environment for the
new administration.