Who is Trump's top choice for Fed chair?

President Trump has expressed strong dissatisfaction with Federal Reserve Chair Jerome Powell's monetary policy, particularly his refusal to cut interest rates. Trump has threatened to replace Powell and has hinted at naming a successor early. His top choices are reportedly individuals who align with his desire for rate cuts and who he believes could be more accommodating to his fiscal policy goals. Here are the key points to consider:

1. **Trump's Criteria for a Successor**:
- Trump has stated that his next choice for Fed chair will be someone who wants to cut interest rates, implying a preference for a more dovish monetary policy.
- The president has called Powell "terrible" and has expressed a strong desire for a successor who shares his view on monetary policy.
2. **Potential Candidates**:
- Among the candidates being considered are former Fed Governor Kevin Warsh, National Economic Council director Kevin Hassett, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent.
- Trump has hinted at having two or three top choices.
3. **Trump's Unconventional Stance**:
- Trump has threatened to name a successor early, potentially as soon as this summer or by September/October, which would be an unprecedented move in the central bank's history.
- This early announcement could be a signal to the Fed to alter its current monetary policy direction, despite Powell's tenure not ending until May 2026.
4. **Implications of an Early Announcement**:
- Such an announcement could challenge the authority of the current Fed chief and heighten economic uncertainty, as it would introduce a new figure who might have a different approach to monetary policy.
- It could also potentially undermine the Fed's independence, as the president's actions could influence the central bank's decision-making process.

In conclusion, while Trump has not publicly announced his final choice, his top candidates are likely those who advocate for aggressive monetary policy easing, particularly through rate cuts. His preferred successor would align with his fiscal policy objectives and could be named at an unusually early time, potentially as soon as this year.