Trump announces his selection for the MAGA-aligned Federal role. future appointments are set to carry greater implications
In the coming years, the Federal Reserve will be undergoing a change in leadership as Jerome Powell's term as Chair comes to an end in May 2026. The potential candidates for the position are diverse, ranging from Fed insiders with leadership roles to former governors and economic advisers.
President Donald Trump has publicly stated that he has narrowed his shortlist to four candidates, including Kevin Hassett, White House National Economic Council Director, and Kevin Warsh, former Fed governor. However, the other two names on the list remain unnamed.
The search for a new Fed Chair is broader than Trump's four names, with interviews ongoing, and Treasury Secretary Steven Mnuchin conducting the search and preparing a shortlist for the President's decision.
Among the contenders are current Fed Vice Chairs Philip Jefferson and Michelle Bowman, Dallas Fed President Lorie Logan, Fed Governor Christopher Waller, and economist Marc Sumerlin.
Kevin Warsh and Kevin Hassett, both on Trump's shortlist, have expressed support for the President's tariffs, with Warsh defending the tariffs by stating that countries will be negotiating trade deals with the administration to mitigate any potential impact on the consumer in the US. Warsh's stance on the president's expansive tariffs is at odds with the general consensus among economists.
Hassett, on the other hand, has vehemently defended the tariffs, stating that he doesn't think there will be a big effect on the consumer in the US. Both Warsh and Hassett have emphasised the importance of the Fed's independence.
Christopher Waller, a current Fed governor, has gained ground with Trump's inner circle as a potential candidate for Fed Chair. Waller dissented on the Fed's latest decision to hold borrowing costs steady, advocating for a rate cut. In his statement explaining his dissent, Waller said that tariffs do not cause inflation beyond a temporary increase and that the Fed should step in with a rate cut to prevent the labor market from falling off a cliff.
Trump is searching for a candidate to replace Jerome Powell as Fed Chair, and the Wall Street Journal has reported that Trump has expanded his list of potential picks for Fed Chair, now including former St. Louis Fed President James Bullard.
In a surprising move, President Donald Trump nominated White House economist Stephen Miran to temporarily fill a vacant seat on the Federal Reserve's Board of Governors. The confirmation of Stephen Miran by the Senate is required for his appointment.
As the race for the Fed Chair heats up, it remains to be seen who will emerge as the President's choice to lead the Federal Reserve in the coming years.
- The search for a new Federal Reserve Chair is extended beyond President Donald Trump's initial shortlist, with interviews ongoing, and Treasury Secretary Steven Mnuchin expanding the potential candidates to include former St. Louis Fed President James Bullard.
- Amidst the diverse pool of candidates for the Federal Reserve Chair position, current Fed Governor Christopher Waller has gained support from Trump's inner circle, dissenting on the recent decision to hold borrowing costs steady and advocating for a rate cut, citing the temporary impact of tariffs on inflation.
- Policy-and-legislation related to finance and business, such as trade tariffs, are significant factors in the nomination process for the Federal Reserve Chair, with candidates like Kevin Warsh and Kevin Hassett expressing support for the President's tariffs, while economist Marc Sumerlin and others may hold differing views. General-news outlets continue to closely follow the race for the Fed Chair as the selection process unfolds.
