Who will be the next Jerome Powell? Here's a look at the top contenders
Powell's term ends in May 2026, but Trump may announce a successor this summer to pressure the current chair.
Top contenders include Treasury Secretary Scott Bessent, Fed Vice Chair Michelle Bowman, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh.
Trump publicly criticized Powell last week, blaming him for costing the nation "hundreds of billions of dollars" by not cutting rates sooner. The president claims he's considering "three or four" candidates for the job.
Trump's plan to name a "shadow Fed chair" months early has drawn warnings from economists. Treasury Secretary Bessent first suggested this idea in 2024, arguing markets would ignore Powell once a successor was named.
Experts like former Fed Vice Chair Alan Blinder call it a "horrible idea" that could confuse markets and weaken the Fed's independence. Stocks dipped briefly on the news, though Bowman and Waller, both current Fed officials, have recently supported rate cuts, aligning with Trump's goals.
Columbia professor Kathryn Judge notes the move is "unprecedented" in the Fed's 111-year history.
Top candidate Kevin Hassett, Trump's National Economic Council director, previously defended Fed independence but now backs the president's agenda.
Michelle Bowman, recently confirmed as supervision vice chair, broke with Powell to advocate for lower rates, a stance that boosted her prospects. Dark horse Kevin Warsh, a 2008 crisis veteran, maintains Wall Street credibility but hasn't publicly endorsed Trump's rate-cut demands.
Bessent remains the wild card: though he called his Treasury role his "dream job," he pledged to serve "where the president thinks I'm best suited" .
Whoever Trump picks must survive Senate confirmation, where Republicans hold a slim majority. Bowman's June confirmation as vice chair passed just 48-46, signaling potential hurdles.
Trump could nominate a current Fed governor like Bowman or Waller, avoiding a board vacancy. However, naming an outsider like Bessent or Warsh would require creating a board seat, complicating the process.
The decision looms as the Fed weighs its first rate cut since 2024, with Trump demanding reductions up to 2 percentage points to ease government debt costs.
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