Former U.S. President Donald Trump has revealed that he has narrowed down his shortlist for the next Federal Reserve Chair to four candidates, as speculation grows over the future of the central bank’s leadership. Jerome Powell’s current term expires in May 2026.
In an interview with CNBC on Tuesday, Trump named two of the frontrunners: Kevin Hassett, director of the White House National Economic Council, and Kevin Warsh, a former Federal Reserve governor. The other two contenders remain unnamed for now.
“Kevin and Kevin, both Kevins, are very good,” Trump said. “And I have two other people that are doing well.”
Trump confirmed that Treasury Secretary Scott Bessent, previously floated as a possibility, is no longer being considered. “I love Scott, but he wants to stay where he is,” he said.
The decision is expected to significantly shape U.S. economic policy over the next four years and test the independence of the Federal Reserve. Trump has repeatedly criticised Powell, referring to him as “Mr. Too Late” for resisting political pressure to cut interest rates. Though Trump has said he is unlikely to remove Powell before his term ends, he has often hinted at dissatisfaction with the Fed’s direction.
Trump also revealed he will soon nominate a replacement for outgoing Fed Governor Adriana Kugler, a Democrat who announced her resignation last week. That nominee could also be tapped as Powell’s successor, he said.
Meet the Top Candidates
Kevin Hassett is a long-time Trump ally who currently leads the National Economic Council. A former chair of the Council of Economic Advisers during Trump’s first term, he returned to the White House during the COVID-19 pandemic. Hassett is known for his strong backing of Trump’s tax policies and tariffs. He faced criticism in 2020 for projecting zero COVID deaths by mid-May based on a controversial model.
A staunch critic of internal resistance to Trump-era policies, Hassett recently defended the President’s dismissal of the Bureau of Labor Statistics head, Erika McEntarfer, claiming political interference in job data.
Kevin Warsh, the youngest person ever appointed to the Fed’s Board of Governors in 2006, played a key role during the 2008 financial crisis. He has recently called for a “regime change” at the central bank and a new Treasury-Fed agreement to manage debt and policy coordination. While Warsh has previously advocated for interest rate hikes and global trade, he has since aligned more closely with Trump’s call for lower rates.
Warsh was also on Trump’s shortlist in 2017 before Powell was chosen. At a 2020 event, Trump jokingly suggested he regretted not selecting Warsh, saying, “I could have used you a little bit here.”
With growing debate over the Fed’s direction, Trump’s choice could prove pivotal to its role in managing inflation, employment, and U.S. financial stability in the years ahead.