The U.S. Treasury Secretary has confirmed the formal initiation of the next Federal Reserve Chair selection process. The Treasury Secretary emphasized that the timeline remains at the President's discretion, while personally participating in the decision-making process.

Speculation about current Chair Jerome Powell potentially retaining his Fed governor position post-chairmanship drew criticism. The Treasury Secretary warned such arrangements could "confuse markets," noting Fed chairs typically resign governor roles upon departure. This suggests Powell may fully exit the Federal Reserve System to prevent perceptions of influencing successors.

Regarding inflation, officials stressed focusing on trends rather than isolated data points, stating U.S. inflationary trends show no acceleration. This stance contrasts with recent presidential criticism of monetary policy. The President publicly lambasted Powell's decision to maintain rates, calling the Fed Chair "terrible" and demanding rates drop to 1% or lower. On social media, the President further urged a 3-percentage-point rate cut, claiming it would save $1 trillion annually.

Reports indicate considerations to appoint a "shadow chair" to pressure the Fed before Powell's term concludes next year. Amid these developments, JPMorgan Chase CEO Jamie Dimon issued a rare public warning: "The Fed's independence is absolutely critical—both for Chair Powell and his successor. Meddling could backfire catastrophically." Dimon becomes the first major Wall Street leader to openly address political pressure on the central bank.

Earlier in April, presidential threats to dismiss Powell raised concerns about eroding Fed credibility. Analysts warned that compromising Fed independence could trigger financial panic and undermine dollar supremacy—comparing it to "a nuclear bomb targeting dollar credibility." The Fed's operational independence has been foundational since 1913.

Simultaneously, Powell has requested an inspector general review of Fed headquarters renovation costs following White House accusations of "$700 million overspending." A presidential economic advisor suggested Powell could be fired over the expenditure issue depending on the Fed's response.

The Treasury Secretary previously indicated numerous qualified candidates exist, with the selection process accelerating this autumn. Reports suggest potential nominees include former Fed governor Kevin Warsh and National Economic Council Director Kevin Hassett, with Treasury Secretary Besant, ex-World Bank chief David Malpass, and Fed governor Christopher Waller also under consideration.