Donald Trump has announced the narrowing of his candidate list for the Federal Reserve chair to four names, all of whom are loyalists. The contenders include Kevin Warsh, Kevin Hassett, Christopher Waller, and Michelle Bowman.
Trump's Candidate List
In an interview on CNBC, Trump confirmed that Scott Bessent, who was previously considered a strong candidate, is out of the running as he prefers to stay at the Treasury Department. Trump said he asked Bessent about his interest in the Fed position, and Bessent replied, ‘Nope, I want to stay where I am.’
Adriana Kugler Resignation
Trump's announcement came shortly after Adriana Kugler, one of the Fed governors, unexpectedly announced her resignation, effective this Friday. This creates a new vacancy for appointment.
Jerome Powell's Future and Political Risks
Jerome Powell still has time left in his term until May 2026, but Trump has repeatedly targeted him in public statements. Trump claims that some recent rate cuts were politically motivated to support Democrats. He also did not dismiss the possibility of appointing someone to undermine Powell's authority before 2026.
Thus, Trump's selection of four candidates highlights his intention to influence U.S. monetary policy, while financial markets are watching his decisions with caution.
