Trump narrows Fed chair list to 3-4 candidates as search accelerates

U.S. President Donald Trump is accelerating efforts to appoint a new Federal Reserve Chair, with only three to four candidates remaining under consideration, according to recent statements from administration officials. Treasury Secretary Scott Bessent confirmed that the president is reviewing a shortlist that includes a mix of current administration members and former Fed officials [1]. The selection process marks a critical step in reshaping U.S. monetary policy ahead of a potential shift in economic direction.

Initially, Trump had narrowed the list of candidates from approximately 11 to a final group of just three or four names, suggesting a decision could be made within weeks [2]. Among those reportedly under consideration are former Fed Governor Kevin Walsh, National Economic Council Director Kevin Hassett, and current Fed Governor Loretta Mester. Notably, the possibility of reappointing former Fed Chair Janet Yellen has also been raised [3]. The shortlist indicates a balance between ideological alignment with Trump’s policy preferences and professional experience.

The urgency in the timeline stems from the fact that current Fed Chair Jerome Powell’s term is set to conclude in May 2026, leaving only a few months for a final decision. Bessent has expressed hope that the new chair could be confirmed as early as September, a timeline that aligns with broader administration goals to influence the direction of monetary policy [4]. This timeline also suggests a desire to stabilize the Fed leadership in anticipation of potential economic developments.

The identity of the next Fed Chair is expected to have significant implications for monetary policy, particularly concerning interest rates. Trump and his economic team have consistently advocated for lower rates, and the appointment of a Fed Chair supportive of this stance could shape U.S. monetary strategy in the coming years [5]. The final decision is likely to reflect a mix of policy vision and governance experience.

The Trump administration’s push to appoint a new Fed Chair is part of a broader strategy to reshape economic leadership, with plans also in motion to name new Fed governors in the coming months [7]. This coordinated approach underscores the administration’s intent to assert a more direct influence over the direction of U.S. monetary policy.

Sources:

[1] "Trump officials cast a wider net for Powell replacement at Fed," POLITICO, https://subscriber.politicopro.com/article/2025/08/trump-powell-fed-chair-bessent-bullard-jefferson-00504784

[2] "Trump is considering suing Jerome Powell, White House ...," AOL.com, https://www.aol.com/trump-says-considering-allowing-major-151639240.html

[3] "Treasury Secretary Scott Bessent says Trump considered ...", New, https://nypost.com/2025/08/12/us-news/treasury-secretary-scott-bessent-says-trump-considered-re-appointing-janet-yellen-as-fed-chair/

[4] "Bessent hopes Miran in place at Fed by September, ...", MSN, https://www.msn.com/en-us/money/markets/bessent-hopes-miran-in-place-at-fed-by-september-leading-to-rate-cut/ar-AA1Kpim0?ocid=finance-verthp-feeds

[5] "Bessent also called for lower interest rates, echoing the ...", Facebook, https://www.facebook.com/HuffPostPolitics/posts/bessent-also-called-for-lower-interest-rates-echoing-the-president/1167386861921313/

[7] "Speculation grows for a fall Fed rate cut - AP Institutional", Invesco, https://www.invesco.com/apac/en/institutional/insights/market-outlook/speculation-grows-for-a-fall-fed-rate-cut.html