Relations between the chair of the US Federal Reserve (Fed) and Donald Trump could not be more turbulent. But Jerome Powell’s term expires next May, with the prospect of a new candidate to be chosen from among these five finalists.
Five candidates for the position of Fed chair
Since Donald Trump’s arrival in the White House, relations with Federal Reserve (Fed) Chair Jerome Powell have appeared complicated. Yet it was Trump who appointed him to this position in 2017 to head the US central bank.
A real power struggle has pitted the two men against each other in recent months, particularly over the management of interest rates. This gave Donald Trump the opportunity to threaten Jerome Powell with dismissal, without worrying about the obvious interference this would have on this institution, which is independent of the government.
But ultimately, the timing appears to be in the US president’s favor. Jerome Powell’s term expires in May next year, giving Donald Trump the opportunity to select his replacement from a list of five potential candidates.
Among these five applicants are two current Fed governors, initially appointed by Trump, Christopher Waller and Michelle Bowman, as well as a senior executive at BlackRock, Rick Rieder. However, two candidates are already among the favorites: Kevin Hassett, director of the White House National Economic Council, and Kevin Warsh, a former Fed governor appointed in 2006 by George W. Bush.
Final shortlist compiled by Scott Bessent
According to statements from the White House, Donald Trump is expected to appoint 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 compiling a final, more restricted shortlist.
It is noteworthy that Donald Trump clearly does not consider Scott Bessent a potential candidate, even though he holds a position equivalent to that of finance minister. Could this be due to an 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 statements 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.
Normally, the identity of the new Fed chair is announced three to four months before they take office, i.e., next March. Some observers see this as a deliberate rush, a way to “influence market expectations about the trajectory of interest rates.”
In any case, everything suggests that the new Fed chair will be selected from among Donald Trump’s most ardent supporters—Bessent, Warsh, or Hassett—so as not to risk missing out on “the most important appointment of the end of the presidential term.”
