Overview
- Trump told the Wall Street Journal he is leaning toward Kevin Warsh or Kevin Hassett to replace Jerome Powell and said the next chair should consult him on policy, adding he wants rates near 1%.
- Powell remains chair through May 2026, and Treasury Secretary Scott Bessent said he has completed interviews and submitted five candidates to the president.
- The Fed approved a third straight 25-basis-point cut in a 9–3 decision, with Austan Goolsbee and Jeffrey Schmid favoring no change and Governor Stephen Miran voting for a 50-basis-point reduction.
- Powell warned the BLS birth‑death model likely overstated payrolls by roughly 60,000 a month since April, raising the chance of revisions showing job losses and reinforcing the case for easier policy.
- Markets are pricing more easing than the Fed’s projections as officials voice divergent views, with Cleveland’s Beth Hammack favoring a tighter stance, Chicago’s Goolsbee urging more data, and Philadelphia’s Anna Paulson emphasizing labor risks.