Trump considers Hassett and Warsh for the position of Federal Reserve Chair, as Powell's term draws closer to its end.
In a recent development, President Donald Trump has revealed that he has four candidates in mind to succeed current Federal Reserve Chair Jerome Powell, with two of them being Kevin Warsh and Kevin Hassett.
Kevin Warsh, a former Federal Reserve Governor during the 2008 financial crisis, is a familiar name in economic circles. He served as a special assistant for economic policy and executive secretary in President George W. Bush's administration. Warsh is currently a fellow at the Hoover Institution and a lecturer at Stanford Graduate School of Business. He has supported higher interest rates and the Fed’s political independence, which may conflict with Trump’s economic views.
On the other hand, Kevin Hassett, the Director of Trump’s National Economic Council, has been a crucial figure in shaping the administration's economic policies. He served as the 29th Chairman of the President's Council of Economic Advisers from 2017 to 2019 and is currently the Director of the National Economic Council in the United States. However, compared to Warsh, less detail is publicly available regarding Hassett's potential candidacy for the Fed Chair position.
Treasury Secretary Scott Bessent has been explicitly ruled out by Trump for the role.
The identities of the other two candidates remain unknown as of now. Trump has been seeking someone who will align closely with his economic views and is frustrated with Powell’s performance.
Adriana Kugler, a member of the seven-member Federal Reserve Board of Governors, has left the board, providing Trump with another chance to name a candidate. Kugler joined the board in 2023 and was scheduled to serve until January 2026.
President Trump has stated that he will make his decision in May 2026, when Powell's tenure as chairman expires. The US is facing a potential 30-40% drop in new international student enrollments for September, which could result in a loss of 1,50,000 foreign students. Despite his frequent threats, Trump has refrained from firing Powell.
It is worth noting that Trump has also planned to nominate Stephen Miran, Chair of the White House Council of Economic Advisers, to fill a vacant Fed board seat, which could be related to candidate positioning though it does not clarify whether Miran is a candidate for Chair.
Sources:
- CNN
- The Wall Street Journal
- Bloomberg
- The market is closely watching the upcoming decision of President Donald Trump regarding the successor of Federal Reserve Chair Jerome Powell, with Kevin Warsh and Kevin Hassett being two of the four potential candidates.
- Kevin Warsh, known for his support of higher interest rates and the Fed's political independence, may face conflicts with Trump's economic views, despite being a familiar face in economic circles.
- Meanwhile, the details about Kevin Hassett's potential candidacy for the Fed Chair position are less clear, although he has been a key figure in shaping the administration's economic policies.
- Adriana Kugler's departure from the seven-member Federal Reserve Board of Governors could provide Trump with an opportunity to name another candidate.
- As policies on finance, business, and the economy continue to shape politics and general news, the decision on Powell's successor will have significant implications for regulation in the DEFIs (Decentralized Finance) market and other areas.
