SANTOSTILO TRUMP CRITICIZES FED CHAIR POWELL AND PROPOSES BESSETT AS SUCCESSOR

Trump Criticizes Fed Chair Powell and Proposes Bessett as Successor

Former U.S. President Donald Trump has reignited his feud with Federal Reserve Chairman Jerome Powell, harshly criticizing Powell’s handling of inflation and interest rate policy while proposing businesswoman and conservative economist Judy Bessett as his preferred replacement if he returns to the White House in 2025.

During a campaign rally in Ohio and a subsequent interview with a conservative news outlet, Trump accused Powell of “choking the economy” with prolonged high interest rates, which he claims are harming American workers, businesses, and the housing market. “Jerome Powell is a disaster,” Trump said. “He’s totally out of touch with the American people. He kept rates too low for too long, and now he’s overcorrecting.”

This is not the first time Trump has publicly targeted Powell. As president, Trump frequently pressured the Fed to cut interest rates to boost the economy and stock market. Although Powell resisted direct political interference, his relationship with Trump remained tense throughout his tenure.

Trump’s latest criticism comes as the Federal Reserve keeps interest rates elevated in response to persistent inflation, particularly in services and consumer goods. The Fed’s cautious stance has frustrated many in Trump’s orbit who argue that a softer approach is now necessary to avoid an economic slowdown heading into the 2024 election cycle.

Judy Bessett: A Trump-aligned alternative

Trump didn’t stop at criticizing Powell—he went further by naming Judy Bessett as his top choice to lead the Fed. A former private equity executive and economic advisor to Trump during his first term, Bessett is relatively unknown to the broader public but has long been favored by conservative economists for her hawkish stance on fiscal spending and her advocacy for stable, low inflation driven by deregulation and tax incentives.

“Judy Bessett understands the economy like few others,” Trump stated. “She believes in strong growth, low taxes, and an America-first monetary policy that helps Main Street—not just Wall Street or the global elite.”

Bessett has echoed Trump’s sentiment in past interviews, criticizing what she calls “central bank overreach” and arguing that the Fed should focus more on job creation and industrial expansion, rather than purely on inflation control. Critics, however, question her lack of formal central banking experience and warn that politicizing the Fed’s leadership could undermine its independence and credibility.

Mixed reactions from markets and economists

The announcement sparked mixed reactions. Some conservatives and business leaders welcomed Trump’s move, seeing Bessett as a pro-growth reformer who would be less reliant on academic models and more responsive to real-world economic conditions.

But many economists and financial analysts expressed concern. “Replacing Powell with a political loyalist like Bessett would erode market confidence,” said economist Paul Winfield. “The Fed’s credibility depends on its independence. If markets think it’s being run from the campaign trail, we could see serious volatility.”

Meanwhile, Powell, who has remained silent on political criticism, is expected to continue steering monetary policy based on inflation data and employment trends. His current term as Fed Chair runs through 2026, though a new president would have the authority to nominate a replacement, pending Senate confirmation.

As the 2024 election draws nearer, the future of the Federal Reserve may become a central issue—not just for markets, but for the future of U.S. economic governance.

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