Relations between the chair of the U.S. Federal Reserve (Fed) and Donald Trump could not be more strained. But Jerome Powell’s term expires next May, with the prospect of a new candidate to be chosen from among these 5 finalists.
5 Candidates for the Position of Fed Chair
Since Donald Trump took office, his relationship with Federal Reserve (Fed) Chair Jerome Powell has appeared to be complicated. Yet it was Trump himself who appointed Powell to the position in 2017 to lead the U.S. central bank.
A genuine power struggle has pitted the two men against each other in recent months, particularly regarding the management of interest rates. This gave Donald Trump the opportunity to threaten Jerome Powell with dismissal, without regard for the obvious interference this posed to an institution that is, after all, independent of the government.
But ultimately, the timing appears to favor the U.S. president. Jerome Powell’s term is set to end in May of next year, providing an opportunity to select five potential candidates from whom Donald Trump hopes to choose his successor.
Among these five candidates are two current Fed governors—Christopher Waller and Michelle Bowman, both originally appointed by Trump—as well as a senior executive at BlackRock, Rick Rieder. However, two candidates are already among the frontrunners: Kevin Hassett, director of the White House National Economic Council, and Kevin Warsh, a former Fed governor appointed in 2006 by George W. Bush.
A final shortlist compiled by Scott Bessent
According to White House statements, Donald Trump is expected to nominate Jerome Powell’s official replacement before the end of the year. However, candidates will first have to undergo a preliminary interview with Treasury Secretary Scott Bessent, who is in charge of a final, more limited shortlist.
Notably, Donald Trump apparently does not consider Scott Bessent a potential candidate, even though he holds a position equivalent to that of Minister of Finance. Could this be due to an all-too-obvious conflict of interest at the head of a monetary authority that is supposed to be independent of the government?
However, this situation could change, according to reports in the Wall Street Journal. Indeed, Scott Bessent “could still emerge as a potential candidate if Trump is not satisfied with the other options”—which he himself must select.
Under normal circumstances, the announcement of the new Fed chair’s identity occurs 3 to 4 months before the date they take office, which is next March. Some observers view this deliberate rush as a way to “influence market expectations regarding the trajectory of interest rates.”
In any case, all signs point to the new Fed chair being selected from among Donald Trump’s most ardent supporters—Bessent, Warsh, or Hassett—to avoid the risk of missing out on “the most important appointment of the final months of the presidential term.”
