James Bullard, former St. Louis Fed president and now dean at Purdue University, revealed he recently met Treasury Secretary Scott Bessent to discuss becoming the next Federal Reserve chair. He said he is “very interested” in the role if conditions ensure success—namely protecting the dollar’s reserve currency status, keeping inflation stable, and safeguarding the Fed’s independence.
The Trump administration is interviewing candidates to replace Jerome Powell, whose term ends in May, though Powell can remain as governor until 2028. Trump and Bessent have been strong critics of Powell, pressing for aggressive rate cuts. The Fed is expected to lower its benchmark rate by 25 basis points this week, citing softer job growth alongside inflation concerns.
Bullard, known for advocating flexible policy during his Fed tenure, expects 75 bps of easing by year-end and sees tariffs as a short-lived inflation driver. He noted weakening labour market conditions, partly linked to immigration changes reducing the number of jobs needed to maintain stable unemployment. He stressed the importance of Fed independence, commenting also that Governor Lisa Cook deserves due process amid fraud allegations.
Info via a Reuters report.
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Markets are already pricing in easier policy, with the Fed expected to cut 25 bps this week and traders eyeing 75 bps of easing by year-end. The dollar stayed under pressure, Treasury yields edged lower, and equities held firm on the prospect of a more dovish Fed leadership.
This article was written by Eamonn Sheridan at investinglive.com.