President Trump has narrowed down his potential candidates to replace the current Federal Reserve Chair.
Trump stated on Tuesday that he is considering four individuals: Kevin Hassett, the Director of the White House National Economic Council, former Fed governor Kevin Warsh, and two other unnamed candidates. He plans to decide “soon.” Powell’s term is set to conclude in May 2026.
“Both Kevins are very good,” Trump commented. “The two Kevins are doing well. And I have two other people that are doing well.”
He also mentioned that Treasury Secretary Scott Bessent, whom Trump previously considered as a potential replacement for Powell, is no longer in contention: “I love Scott, but he wants to remain in his current position.”
Trump’s ultimate choice could significantly impact the economy over the next four years and the Federal Reserve’s reputation. Experts have suggested that Trump’s attempts to pressure Powell, whom he has called “Mr. Too Late,” into lowering short-term interest rates have damaged the institution’s credibility.
Trump has repeatedly criticized Powell, who has resisted that pressure, and has hinted at potentially firing him—an action only permissible for specific causes—though he has also stated that firing Powell is “highly unlikely.”
Trump dismissed a Wall Street Journal report last month as “typically untruthful” after it claimed that Bessent advised Trump against firing Powell due to legal concerns and economic risks. Trump responded on Truth Social, stating, “Nobody had to explain that to me. I know better than anybody what’s good for the Market, and what’s good for the U.S.A.”
Trump will have the opportunity to appoint a fourth Republican to the Fed’s seven-member board of governors sooner than anticipated. This is due to Adriana Kugler, a Democrat, announcing on Friday that she would be stepping down before her term expires in January. The President told CNBC on Tuesday that this news was a “pleasant surprise” and that his nominee to replace Kugler, to be announced “soon,” might also be his pick to succeed Powell.
Here’s a closer look at Trump’s potential candidates.
Kevin Hassett
Hassett currently serves as a key economic advisor to Trump as the director of the National Economic Council. He previously held the position of senior advisor to Trump during his first term as president, serving as the chair of the Council of Economic Advisers from 2017 to 2019.
He rejoined the White House in 2020 to assist with Trump’s COVID-19 response, during which he received criticism for using models to project that pandemic deaths would reach zero by mid-May of that year.
Hassett is a strong supporter of Trump’s policies, including Trump’s “,” “,” , and . He also defended Trump’s controversial appointee Erika McEntarfer, the head of the Bureau of Labor Statistics, after the President made unsubstantiated claims that recent monthly jobs data was “manipulated for political purposes.”
Hassett told CNBC on Monday that “throughout the U.S. government, there have been people who have been resisting Trump everywhere they can” and that a “fresh start” is needed to “ensure that this doesn’t happen in the data agencies.”
Hassett, who holds a doctorate from the University of Pennsylvania, was previously a fellow at Stanford University’s conservative Hoover Institution and also worked at the center-right think tank, the American Enterprise Institute.
Kevin Warsh
Warsh became the youngest Fed governor in the central bank’s history in 2006 at the age of 35, serving until 2011. During the 2008 financial crisis, he acted as the central bank’s main point of contact with Wall Street. He worked as a mergers and acquisitions banker at Morgan Stanley from 1995 to 2002 before joining the George W. Bush Administration as an economics advisor, ultimately leading to his appointment to the Fed.
Warsh has voiced support for lower interest rates and has criticized Powell for not doing so.
“The President is right to be frustrated with Jay Powell and the Federal Reserve,” Warsh said on Fox News in July. At a lecture hosted by the Group of Thirty, an international body of economists and financial leaders, he stated that “the Fed’s current wounds are largely self-inflicted.” He also told CNBC in July that the Fed needs “regime change in the conduct of policy” and “a new Treasury-Fed accord, like we did in 1951 after another period where we built up our nation’s debt and we were stuck with a central bank that was working at cross purposes with the Treasury.”
“That’s the state of things now,” he said on CNBC. “So if we have a new accord, then the … Fed chair and the Treasury Secretary can describe to markets plainly and with deliberation, ‘This is our objective for the size of the Fed’s balance sheet.’”
However, Warsh has also advocated for higher interest rates in the past, including last year, as well as for , , and the , which could conflict with Trump’s economic vision.
Warsh is currently a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business. He also serves on the Panel of Economic Advisers of the Congressional Budget Office, a nonpartisan body. He is married to Jane Lauder, whose father, billionaire Estée Lauder heir Ronald Lauder, reportedly suggested that Trump consider buying Greenland.
Warsh was considered by Trump for the position of Fed Reserve Chair in 2017. Trump mentioned his decision not to choose Warsh and his ultimate selection of Powell at the signing of a phase-one trade agreement with China in January 2020.
“Kevin Warsh. Kevin. Where’s Kevin? I don’t know, Kevin, I could have used you a little bit here. Why weren’t you more forceful when you wanted that job?” Trump said. “I would have been very happy with you.”
“`