US President Donald Trump is working behind the scenes on a successor for Jerome Powell as chairman of the Federal Reserve (FED). According to his finance minister Scott Bessent, these are eleven names that are “very strong candidates”. The selection starts next month.
Candidates with a variety of backgrounds in the picture
On the list, which CNBC reported earlier this month, are both sitting FED directors and former presidents of regional banks. Dallas Fed President Lorie Logan, former St. Louis President James Bullard, vice-president Philip Jefferson, Governor Chris Waller and supervisor Michelle Bowman.
Former governor Larry Lindsey and former economic adviser of George W. Bush, Marc Sumerlin, would also be in the picture. Furthermore, names from the private sector, including David Zervos from Investingsbank Jefferies and Rick Rieder, head of investments in fixed -income values at BlackRock.
Rieder sees Bitcoin as a fixed part of the market
Rieder, Waller and Bowman in particular attract the attention of crypto investors. Rieder told The Wall Street Journal at the beginning of this year that Bitcoin (BTC) can probably become “an important part of the investment mix”. He previously called crypto “here to stay” and pointed to the receptivity of younger generations.
BlackRock manages the largest Bitcoin and Ethereum (ETH) Exchange-Traded Funds (ETF) in the world. According to Marktvolgers, a FED chairman with a positive sound about Crypto would therefore have an impact on the way in which financial institutions deal with it.
Bowman recently announced that, according to her, FED employees may have a small position in crypto to better understand technology. Waller stated a day later that the banking sector has “nothing to fear” from payments with crypto outside the traditional system.
Powell will remain on the board until 2028
Another name that stands out is that of David Zervos. His Bank Jefferies has supervised several companies in the sector in recent years, including Stablecoin publisher Circle and trading platform Etoro. The bank was also involved early in the Bitcoin purchases of Michael Saylor’s company Strategy.
Powell itself remains a member of the board until 2028, but his term as chairman ends in May. His recent speech fed the expectation that the Fed will lower interest rates in September.
If a crypto-minded candidate follows him, that may possibly accelerate the discussion about the role of digital coins within the financial system. Trump will decide whether it will come to that in the coming months.
Source: https://newsbit.nl/trump-kijkt-naar-opvolgers-fed-voorzitter-drie-hebben-gunstige-blik-op-crypto/
