Trump Narrows Fed Chair Shortlist to 3-4 Candidates Amid Policy Shift Push

Donald Trump has narrowed the list of potential candidates for the next Federal Reserve Chair to three or four individuals, though the identities have not been disclosed [3]. This development comes as current Fed Chair Jerome Powell’s term is set to expire in May 2026, and the administration moves to secure a successor who aligns with its economic strategy. While Trump has not officially announced the names, reports indicate that Kevin Hassett, director of the National Economic Council, and Kevin Warsh, a former Fed governor, are frequently mentioned as leading contenders [1].

The U.S. Treasury, led by Scott Bessent, has confirmed that 11 candidates will still go through formal interviews [3]. Among those being interviewed are David Zervos, chief market strategist at Jefferies; Larry Lindsey, former Fed governor and ex-NEC chair; and Rick Rieder, BlackRock’s bond chief [3]. However, most of these individuals are considered less likely to be selected, with the interviews appearing to serve as a procedural formality rather than a genuine competition for the top role.

Trump has been vocal in his criticism of Powell, calling him a “moron” and a “numbskull” during recent comments [3]. He has accused Powell of stalling necessary interest rate cuts and damaging the economy in the process. Trump has expressed a desire to reduce rates to as low as 1%, significantly below the current range of 4.25% to 4.5% [3]. This pressure for aggressive monetary easing reflects the administration’s broader economic agenda, which favors low rates to stimulate growth and reduce the perceived burden of high borrowing costs.

The debate over the next Fed chair is unfolding against a backdrop of economic uncertainty. July’s lower inflation data and weaker-than-expected employment numbers have intensified calls for rate cuts [3]. Trump and his team, including Bessent, now advocate for a 0.5 percentage point cut at the Fed’s upcoming meeting in September [3]. This push for swift action contrasts with the more cautious stance of some Fed officials, who argue that premature cuts could risk reigniting inflation, particularly in light of ongoing tariff policies that continue to impact import prices.

Christopher Waller, a current Fed board member, and Michelle Bowman have also drawn attention as potential shortlist candidates [3]. Both have shown a willingness to consider rate cuts based on recent economic data, though their proposals did not gain majority support during the last Fed meeting. Waller and Bowman represent a mix of experience in both monetary policy and banking supervision, making them valuable assets for any administration seeking to balance economic growth with financial stability.

The final decision on the next Fed chair will be a critical moment for U.S. economic policy. The chosen candidate will shape the Fed’s approach to interest rates, inflation, and employment, directly influencing market behavior and investor confidence. The administration’s emphasis on candidates who support a pro-growth agenda and a hawkish stance on inflation suggests a desire for continuity in its economic vision, even as it faces mounting pressure to respond quickly to changing conditions.

As the administration moves closer to making a decision, speculation and analysis will continue to dominate discussions among economists and financial analysts. The eventual announcement will carry significant weight, setting the tone for the Fed’s future direction and its impact on the broader economy. For now, the shortlist remains a closely guarded secret, with only broad outlines of the candidates' backgrounds and policy preferences emerging from the administration’s public statements.

Source:

[1] title: I3investor - Blog Headlines & Articles | I3investor

(url: https://klse.i3investor.com/web/headline/blog)

[2] title: Trump officials cast a wider net for Powell replacement at Fed

(url: https://subscriber.politicopro.com/article/2025/08/trump-powell-fed-chair-bessent-bullard-jefferson-00504784)

[3] title: 3 No-Brainer Chip Stocks to Buy Right Now

(url: https://www.mitrade.com/au/insights/news/live-news/article-8-1037042-20250814)