Topline
The list of candidates to succeed Fed Chair Jerome Powell has been cut down to four after Treasury Secretary Scott Bessent dropped out of consideration, President Donald Trump said Tuesday amid his growing feud with Powell over the agency’s decision to hold interest rates.
Jerome Powell’s term expires in 2026, despite pressure from Trump for him to resign.
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Key Facts
Trump, who spoke to CNBC Tuesday morning, said a list of potential candidates to lead the Fed has been narrowed to four, noting Bessent told Trump he “wants to stay where he is” and “he likes being treasury secretary.”
Former Fed Governor Kevin Warsh and National Economic Council Kevin Hassett are among the four candidates, Trump said, adding, “Both Kevins are very good, and there are other people that are very good too.”
Trump, who said his decision would not come soon, did not disclose names of other potential candidates.
Powell, whose term as Fed chair ends in May 2026, has faced growing criticism from Trump throughout his second presidency as the Fed has declined to ease interest rates, citing economic uncertainty brought about by Trump’s wide-reaching tariffs on U.S. trade partners.
Who Else Could Succeed Jerome Powell As Fed Chair?
Trump previously said there were “three or four” candidates who could replace Powell, though he has not publicly expressed interest in other suitors beyond Warsh and Hassett. Among other potential successors include David Malpass, a former Trump administration official and ex-World Bank president, and Fed Governor Christopher Waller, people familiar with the matter told the Wall Street Journal. Warsh is the betting favorite to succeed Powell at 34.1% odds, according to Polymarket, followed by Hassett (17.4%) and Waller (14.6%), though there are greater odds (31%) Trump makes no announcement by the end of the year.
Why Does Trump Want To Replace Jerome Powell?
Trump has voiced issues with Powell and the Fed’s cautious monetary policy while accusing Powell of being “too late” to lower interest rates and misreading inflation data. Trump said Tuesday that Powell told him he would “keep interest rates so low” and that Powell was “a low interest rate person” before the Fed opted to hold interest rates between 4.25% and 4.5% again in July. Vice President JD Vance added to Trump’s criticism of Powell in June after accusing the Fed of “monetary malpractice.” Office of Management and Budget Director Russell Vought has also accused Powell of leading an “ostentatious” renovation of the Fed’s headquarters, alleging Powell was responsible for “fiscal mismanagement” as Vought claimed the project was $700 million over budget. Powell has disputed the claims.
What To Watch For
Who Trump nominates to replace former Fed Governor Adriana Kugler, who announced suddenly last week she would vacate her seat ahead of her term expiring in January. Trump said he has a “couple of people in mind” to fill Kugler’s seat, and his nomination could increase pressure on the Fed to lower interest rates after two members of the agency’s policymaking panel voted for a quarter-point reduction, marking the first pair of dissenting votes in decades. Kugler was absent from the vote.
Further Reading
Source: https://www.forbes.com/sites/tylerroush/2025/08/05/trump-says-4-candidates-running-for-fed-chair-as-treasury-secretary-bessent-does-not-want-role/