Trump releases Fed chair teaser video on Instagram saying “everybody will be impressed”

 
Lucy White
Trump said he had "somebody very special in mind" (Source: Instagram)

US President Donald Trump posted an Instagram video last night teasing viewers as to the identity of the next Federal Reserve chair.

Trump said he would announce his choice “some time next week”, ending weeks of speculation. Janet Yellen, the current chair whose term is due to expire in February, had been thought to be a contender, but reports emerged last night from US news site CBS stating that she was no longer in the running.

Read more: DEBATE: Will Janet Yellen be reappointed as chair of the US Federal Reserve?

Trump said in the Instagram video that he had “someone very special in mind” who would “hopefully do a great job”.

“I think everybody will be impressed, but most importantly at the end of eight years you will really be impressed,” he added.

He went on to praise the US economy, saying “things are looking good”.

Figures released yesterday showed the American economy has grown at a much faster rate than economists expected so far this year, expanding by three per cent in the year to September.

Read more: US GDP smashes growth consensus forecasts

Sources cited in US media have named hawkish Stanford University economist John Taylor or current Fed governor Jerome Powell as Yellen's most likely successor. Fed chairs, if deemed credible, can influence a wide range of government policies.

Powell would be seen as a stable choice, since he has never dissented from a majority Fed decision since his appointment to the board in 2012. Taylor might aim to shake things up a little more – although with the Fed having missed its inflation goal for the majority of the past five years, it seems unlikely he would propose any drastic changes to Yellen's slow and steady pace of rate hikes and balance sheet runoff.

Read more: Janet Yellen: The Fed may be tightening, but quantitative easing's day will come again

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