Powell's successor enters the final selection list, Trump says decision will be made before the end of the year.

On Monday, U.S. Treasury Secretary Mnuchin confirmed that five candidates have made it to the final list of nominees for the position of Federal Reserve Chairman, and President Trump stated that he expects to make a final decision before the end of the year. Mnuchin, during an interview on Air Force One, stated that the candidates include current Fed Governor Christopher Waller, Michelle Bowman, former Fed Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock executive Rick Rieder. It is widely expected that the Federal Reserve will cut interest rates by 25 basis points again at the two-day meeting ending on October 29, marking the second consecutive rate cut. Prior to the return to a rate-cutting cycle, Trump had expressed hope for a one-time 300 basis points rate cut by the Fed. Trump also emphasized that he does not believe Mnuchin will leave to take over the Federal Reserve. Finding a balance between political pressure and market trust will be the core challenge for the new Chairman, as they will need to address Trump's desire for low-interest rates while maintaining investor confidence and the credibility of the monetary authority. Chair Powell's term will end in May next year, but his term as a Fed Governor will continue until early 2028. He has not indicated whether he will step down as Chairman after his term ends. If he stays on, he may continue to have a potential influence within the Federal Open Market Committee (FOMC) under the new Chairman. The current FOMC is in a dilemma as employment sharply cooled in the summer, sparking concerns about rising unemployment rates, prompting a 25 basis points rate cut in September and possibly another one this week. On the other hand, many officials are worried that inflation levels are still about one percentage point higher than the 2% target, and strong economic growth in the third quarter has some members wary of early or excessive easing. The future of U.S. monetary policy remains uncertain and divided.