gastronomy

Donald Trump doesn’t like Jerome Powell. And he was the one who chose him to lead the Federal Reserve, the Fed, in 2018. However, the Republican is convinced that the Fed chairman has sided with the Democrats and is determined to do little less than destroy the American economy, first by raising rates at a speed never seen in the last 40 years and, later, by resisting making the first cut, which seems likely to come no later than after the summer at the earliest. Although back in February he accused him of wanting to lower rates to help the Democrats.

No matter what Powell does, the relationship between the two is broken and Trump announced weeks ago his intention to remove the Fed chairman. But he later changed his mind, and in an interview with Bloomberg promised to keep him at the helm of the central bank… Although the conversation was published in mid-July, it was recorded before Trump was assassinated and his popularity soared to unprecedented levels, increasing his chances of winning the election.

Whatever his final decision, Trump already has a list of candidates to replace Powell. Although removing the Fed chairman is not easy, there are mechanisms to do so.

Of course, everything depends on the need for the Republican Party to win the presidential elections by a large majority, taking control of the Senate. This scenario was unthinkable three weeks ago, but now the fight between Kamala Harris and Donald Trump is close.

Trump has prepared the list of substitutes, which he consults with his political allies at the Republican National Convention. Although it is a complex process.

With no vacancy on the central bank’s board, it would first be forced to appoint one of the current governors, with Christopher Waller and Michelle Bowman being the leading candidates, since both are Republicans. This would be an interim appointment pending a vacancy on the board.

The US president can always push for a governor to resign and vacate his post, paving the way. Everything will depend on the power that the future occupant of the White House has at that time.

Candidates

Kevin Warsh, former Federal Reserve Board member.

Expansion

Among the names Trump is considering to replace Powell is Kevin Warsh, who was already on the shortlist in 2017 and served on the Fed board between 2006 and 2011. Although he began his career at Morgan Stanley, he soon opted for a more institutional and political profile, becoming a member of the Republican Party. He is currently a professor at Stanford and an advisor to the Congressional Budget Office.

Arthur Laffer, economist advisor to Ronald Reagan.

Expansion

Also on the short list is Arthur Laffer, former economic advisor to Ronald Reagan and inventor of the so-called Laffer Curve, which is studied in all business schools. The theory is that there is a tax rate that can maximize revenue collection and, once that threshold is exceeded, tax revenues fall even if taxes are increased.

The problem with Laffer’s appointment is his age, as he is 83 years old and would take over the reins of the central bank after turning 84, for a four-year term.

The third candidate is Kevin Hassett, former chairman of Trump’s economic council from 2017 to 2019. He was also an advisor to John McCain in the 2000 presidential primaries and is the author of several economics and finance textbooks. In 1999, he predicted that the Dow Jones would reach 36,000 points within five years. Although the index has surpassed that level, the reality is that it took more than two decades to achieve it.

Expansion

With any of these three names, Trump would secure control of the Federal Reserve, since all three economists are within the Republican Party sphere.In addition to being able to influence the country’s monetary policy, it would also be responsible for shaping new regulations to adapt capital requirements in American banking to Basel III.

This is one of the most controversial issues and has sparked a real war between the big banks and the Federal Reserve in recent months.

Trump’s position is aligned with the interests of the banking sector, which is seeking a regulation that increases the new capital requirements as little as possible. The Republican could leave them as they are now, compared to Powell’s proposal, which involves raising them by between 3% and 5%, after lowering its initial plan, which contemplated a 20% increase, which unleashed the fury of the sector.

Republican Donald Trump will travel to the U.S.-Mexico border later this week, as part of an effort by his campaign to increase political pressure and steal the spotlight from Kamala Harris. as Democrats celebrate their presidential nomination at their national convention in Chicago.

Trump will travel to Montezuma Pass, Arizona, on Thursday, the same day Harris is scheduled to give her acceptance speech at the Democratic National Convention.

The border visit is part of a weeklong campaign that will take the former president to several key states, after weeks in which he held only one or two events a week. The Trump campaign and its staff’s roster of activities also includes daily news conferences, which aides hope will represent a stark contrast to Harris’ campaign, which has yet to hold an official news conference since securing the Democratic nomination.

The ramped-up campaign agenda comes as Trump’s campaign has been losing ground to Harris, who has made slight gains in national polls and fundraising. Trump’s advisers said they believe forcing the vice president to participate in unscheduled meetings and policy debates would ultimately be detrimental to her campaign.

“While Harris dodges questions from the press and attempts to backtrack on her extreme policies like the New Green Scam and bans on American energy, President Trump and Senator Vance will take their “America First” message to voters in battleground states across the country.”Trump advisers Chris LaCivita and Susie Wiles said in a statement.

Harris has occasionally taken questions from reporters and has committed to a full interview later this month.

In Arizona, Trump is expected to meet with the Border Patrol union and members of the sheriff’s department and participate in a briefing accompanied by officials including the county sheriff and Brandon Judd, who is the former chairman of the National Border Patrol Council. He will then participate in a walk along the border before taking part in a listening session with ordinary Americans and making remarks to the press, according to campaign officials.

Before heading to the border, Trump is expected to hold a rally on Monday in Pennsylvania, a key debate state. Harris will tour the state by bus over the weekend before heading to Chicago for the convention.

On Tuesday, while Harris and her running mate, Tim Walz, will attend an event in Milwaukee, Trump will deliver a speech on “crime and security” in Howell, Michigan. On Wednesday, the day Walz is scheduled to give his acceptance speech, Trump will hold a national security rally in North Carolina. And after his trip to the border, Trump will attend a rally in Glendale, Arizona.

Harris’ entry into the race has upended a 2024 contest that was already unprecedented in its nature, with Trump running as the first former president to be convicted of a felony, surviving a failed assassination attempt at an outdoor rally and being forced to switch sides after Biden was ousted from the ticket by a Democratic pressure campaign.

Recent polls have shown a tight race in a campaign in which Trump was previously a consistent front-runner. A poll released Sunday shows Harris leading Trump by a narrow margin in a head-to-head matchup, 49% to 45%, among registered voters nationwide. The same poll, by the Washington Post, ABC News and Ipsos, showed a dead heat in early July when President Joe Biden was the candidate.