Who Will Replace Jerome Powell as Chairman of the Fed?
President Donald Trump has revealed that he’s narrowed down his list of potential successors to Federal Reserve Chair Jerome Powell to four individuals, signaling that a major decision on U.S. monetary leadership may be approaching.
Among those under serious consideration are Kevin Hassett, director of the National Economic Council, and Kevin Warsh, a former Federal Reserve governor.
In an interview on CNBC, Trump spoke positively of both men, saying, “Kevin and Kevin, both Kevins, are very good.” He added that two other names are also in the mix but declined to disclose them. He also confirmed that Treasury Secretary Scott Bessent is not a candidate, stating, “I love Scott, but he wants to stay where he is.”
A Shift in Strategy After Tensions With Powell
Trump’s relationship with current Fed Chair Jerome Powell has long been strained. The president has criticized Powell for not moving fast enough on rate cuts and has questioned the extent of his control over central bank decisions. Recently, Trump suggested that the Fed’s board of governors could take a more dominant role in guiding the central bank, potentially reducing Powell’s influence.
While he has previously floated the idea of firing Powell, Trump now appears to be backing away from that route, acknowledging legal barriers following a recent Supreme Court ruling that restricts removing a Fed chair without cause. Still, his pressure continues, with the president recently targeting Powell over the Fed’s $2.5 billion renovation project, suggesting mismanagement.
New Opportunity Emerges as Kugler Steps Down
The resignation of Fed Governor Adriana Kugler last week may have opened the door for Trump to accelerate changes at the Fed. When asked whether his replacement for Kugler might also be a future Fed chair, Trump replied, “It’s a possibility,” hinting at strategic overlap in upcoming appointments.
Who Are the Frontrunners?
Kevin Hassett has been a longtime Trump ally, previously serving as chairman of the Council of Economic Advisers and returning during the pandemic to support economic policy efforts. He currently leads the National Economic Council and has been outspoken about internal resistance to Trump’s agenda across government agencies. A former AEI economist, Hassett is deeply embedded in conservative economic policy circles.
Kevin Warsh, who served at the Fed until 2011, has become a prominent critic of Powell’s leadership. Now a fellow at the Hoover Institution, Warsh has advocated for faster rate cuts and a complete overhaul of how the Fed works. He recently called for a modern-day Treasury-Fed accord, arguing that the central bank’s policies have been working against national economic interests.
Trump praised Warsh directly last month, describing him as “very highly thought of.”
What’s at Stake
Powell’s term doesn’t end until May 2026, but Trump’s early moves suggest he’s preparing to reshape the Fed in advance. If he follows through with one of these appointments, it could mean a dramatic shift in how the central bank approaches interest rates, inflation, and its independence from the executive branch.
Whether it’s Hassett, Warsh, or another name still under wraps, the president’s next move could redefine U.S. monetary policy for years to come.
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