Donald Trump says he has ‘three or four’ candidates in mind to lead the Federal Reserve
US president signals he could name ‘shadow chair’ before Jay Powell leaves central bank
Donald Trump said he had cut his Federal Reserve chair shortlist to “three or four” candidates and left the door open to naming a shadow successor before Jay Powell departs.
The president said on Wednesday that he had a small handful of contenders in mind who would be “great” in the role, even as the US Treasury confirmed plans to interview 11 candidates.
Trump did not provide names but the three front-runners for the job are National Economic Council chair Kevin Hassett, former Fed governor Kevin Warsh, and incumbent Fed governor Christopher Waller.
The list of candidates to be quizzed by Treasury secretary Scott Bessent features many names who are seen as long shots to become Trump’s nominee, including David Zervos, chief market strategist at Jefferies.
Former Fed governor and National Economic Council chair Larry Lindsey and BlackRock’s bond chief Rick Rieder were also candidates, according to a senior Treasury official. Those names were first reported by CNBC.
Trump has bashed Powell throughout his second term, labelling the Fed chair a “numbskull” and a “moron” over his refusal to cut interest rates. Powell’s term as chair is set to end in May 2026.
In his comments on Wednesday, the president reiterated those criticisms and said that he planned to name Powell’s replacement “a little bit early”.
Trump wants borrowing costs cut from their current level of 4.25 per cent to 4.5 per cent to 1 per cent. But Powell has said Trump’s trade war has halted a rate-cutting cycle that began in 2024, over fears that it might push up prices.
A grim jobs report and a cool inflation reading for July have raised the prospect of a 0.25 percentage point cut in September, with administration officials — including Bessent — pushing for a jumbo half point move.
Other candidates who are on the list but are seen as unlikely to get the job include Fed vice-chairs Michelle Bowman and Philip Jefferson; Lorie Logan, the head of the Dallas Fed; James Bullard, the former head of the St Louis Fed; and Marc Sumerlin, a former economic adviser to president George W Bush, who was in the race for chair when Powell was nominated in 2017.
Bowman, a Trump appointee, backed a 0.25 percentage point cut at the Fed’s July vote, but has a background in banking supervision rather than monetary policy. Jefferson has more economics pedigree but was nominated by former president Joe Biden.
Bullard told CNBC on Tuesday that the Fed needed to cut rates now and should be on track to lower borrowing costs by a full percentage point by the middle of next year.