Senators are demanding answers on inflation, pressing Federal Reserve officials for clarity on economic data that has shown unexpected volatility in recent months. The latest Consumer Price Index report revealed inflation ticked lower to 2.9%, but economists warn that tariffs and supply chain disruptions could push prices higher again.
Scott Bessent is emerging as a potential contender to replace Jerome Powell as Federal Reserve Chair. The Treasury Secretary, known for his aggressive trade policies and fiscal expertise, has been floated as a possible successor, though the White House swiftly denied reports of formal interviews. Bessent’s name appears alongside former Fed Governor Kevin Warsh, signaling a shift toward leadership with stronger ties to fiscal policy.
Trump has promised to name Powell’s successor soon, fueling speculation about the direction of monetary policy. Powell’s term runs through May 2026, but tensions between the administration and the Fed have intensified. Trump has repeatedly criticized Powell’s cautious approach, pushing for faster rate cuts to stimulate economic growth.
Inflation remains a central concern. The Labor Department’s latest data shows core inflation at 3.2%, slightly down from previous months but still above the Fed’s 2% target. Economists warn that Trump’s expanding tariff strategy could keep prices elevated, complicating efforts to stabilize the economy.
Sources
https://www.nasdaq.com/articles/scott-bessent-emerges-shortlist-succeed-powell-fed-chair
https://finance.yahoo.com/news/bessent-emerges-possible-contender-succeed-171503315.html
https://cryptobriefing.com/fed-chair-successor-bessent-powell/