Kathmandu. US President Donald Trump has announced his candidacy for the post of chairman of the Federal Reserve.

The long-awaited decision is expected to demonstrate how independent the US central bank can remain from the White House and electoral politics.

Over the past year, Trump has been critical of current Fed Chair Jerome Powell. Powell’s term is set to expire in May. Trump said that interest rates should be cut more sharply for faster economic growth. But Powell took a cautious approach, given the potential for soaring inflation due to the Trump administration’s tax policies.

On Thursday night, during the screening of a documentary about his wife, Trump said he would announce the Fed chairman on Friday morning. He expressed the belief that the person to be selected would be widely respected in the economic sector and would be a well-known personality.

Trump has not revealed much about the candidate, but Treasury Secretary Scott Besant is said to be leading the search. The names of Kevin Warsh, Christopher Waller, Rick Ridder and Kevin Hassett are doing the rounds. There has been speculation that Trump’s recent comments are inclined towards Warsh.

Meanwhile, tensions between Trump and the central bank are rising over the cost of renovating the Fed’s headquarters. In this regard, the Fed received legal notice from the Department of Justice. In a video message, Powell clarified that the interest rate was set in the interest of the people rather than political pressure.

Trump has been hoping his nominee will lower interest rates. This will have a direct impact on the economy, inflation and employment. Powell could remain on the Fed’s board of governors until 2028, which could pose procedural challenges to Trump’s plan to maintain full control of the board, analysts say.

Powell said he has not yet made a decision on whether he will leave the board, but suggested that the successor should be held accountable through Congress while avoiding political influence.