Former US Treasury Secretary predicts that Trump will appoint a "respected" person to replace Powell.

Former US Treasury Secretary Lawrence Summers said he expects President Trump to nominate a mainstream candidate to replace Federal Reserve Chair Jerome Powell, despite Trump's previous criticism of the central bank chief for not lowering interest rates this year. Summers said in an interview, "If Trump's decision does not make observers on both sides feel that it is a rational choice, I would be very surprised." He added that once the news is announced, the financial markets will quickly react, "I am more confident than some people" Trump will make such a decision. Powell's term as chair is set to end in May 2026, and Trump stated this month that the next Federal Reserve chair nominee will be announced soon. In April, Treasury Secretary Steven Mnuchin said that interviews for potential candidates to replace Powell would happen "sometime in the fall." It has been previously reported by the media that potential candidates include Mnuchin, as well as former Federal Reserve Governor Kevin Warsh.