Trump Narrows Fed Chair Candidates to Four Names Including Waller and Hassett

Federal Reserve Governor Adriana Kugler's unexpected resignation has reignited speculation about the next chair of the U.S. central bank. Kugler submitted her resignation to President Donald Trump on July 5, 2025, and will officially step down on August 8—five months before the end of her term [1]. Her departure opens a potential opportunity for Trump to name a new governor and begin the process of selecting a successor for current Fed Chair Jerome Powell, whose term is set to expire in May 2026 [6].

Kugler, a 55-year-old economist and Georgetown University professor, previously served as chief economist at the U.S. Department of Labor and as U.S. executive director at the World Bank [1]. Her academic background includes first-class degrees in Economics and Political Science from McGill University and a PhD in Economics from the University of California at Berkeley. Following her resignation, Kugler will return to her academic position at Georgetown University.

Trump responded to the news with enthusiasm, calling Kugler a “Biden appointee” and criticizing Powell for not moving quickly enough on interest rates. “‘Too Late’ Powell should resign, just like Adriana Kugler,” the president wrote on his Truth Social platform [1]. The tone suggests a continued push for more accommodative monetary policy.

In a recent interview with CNBC, Trump narrowed the list of potential candidates for the Fed chair to four names: current Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and possibly a fourth individual not yet publicly named [3]. Treasury Secretary Scott Bessent has opted to stay in his current role, declining to run for the position [2].

Both Kevin Warsh and Kevin Hassett have expressed support for lowering interest rates, a policy that aligns with Trump’s public statements on the need for more aggressive rate cuts [4]. Trump described both as “very good” choices, though he emphasized that the final decision will rest with him.

The president has indicated a preference to name both Kugler’s successor and Powell’s replacement at the same time, a move that would streamline the transition process [5]. Analysts are watching closely, as the Fed chair plays a central role in shaping monetary policy and influencing economic conditions in the U.S. and globally.

Kugler’s early resignation accelerates Trump’s timeline for making key appointments. The president had previously stated he would soon name a successor for Kugler, and with her exit now confirmed, the window for action has narrowed [3]. Trump’s vocal criticism of Powell—calling him “too late” in responding to inflation—raises questions about whether his chosen candidate will face pushback from a Fed board that has historically favored a cautious approach to rate changes [3].

Meanwhile, financial markets have begun to react. Emerging markets have seen asset prices fluctuate as speculation grows about the likelihood of earlier and sharper rate cuts under a new Fed leadership [7]. However, the actual pace and magnitude of policy shifts will depend on incoming economic data and the trajectory of inflation.

The Fed’s leadership transition is now a focal point for investors and policymakers alike, with significant implications for both domestic and international financial markets. The process of selecting the next chair will be closely observed, as it will shape the central bank’s stance for years to come.

[1] https://news.bitcoin.com/talks-of-a-new-fed-chair-heat-up-after-fed-governor-adriana-kugler-quits/

[2] https://baynews9.com/fl/tampa/politics/2025/08/05/trump-replacements-fed-chair-bessent-out

[3] https://www.latimes.com/business/story/2025-08-05/trump-narrows-fed-chair-candidates-to-four-excluding-treasury-secretary-bessent

[4] https://finance.yahoo.com/news/trump-fed-pick-could-face-100000452.html

[5] https://www.eagletribune.com/region/ap-business-summarybrief-at-2-36-p-m-edt/article_b14e2b51-f551-5323-a014-a8ea2b94e0f2.html

[6] https://www.marketscreener.com/news/fed-governor-resigns-powell-s-succession-accelerates-ce7c5edbdf89f027

[7] https://finance.yahoo.com/news/emerging-markets-trim-gains-us-154858894.html