During a press conference President Donald Trump announced he is considering between three to four candidates to replace Federal Reserve Chair Jerome Powell while expressing negative opinions about Powell and hinting at future leadership changes before Powell’s term ends in May 2026.
Trump revealed to reporters that he has identified three to four candidates for the position while simultaneously calling Powell “terrible.” Trump has maintained his pressure on the central bank to reduce interest rates even though he previously backed away from firing Powell.
The reported candidates for the position include former Fed Governor Kevin Warsh and current Governor Christopher Waller as well as National Economic Council chief Kevin Hassett and Treasury Secretary Scott Bessent. The analysts predict Trump will try to influence monetary policy through a de facto “shadow” Fed chair position before an official transition takes place.
The Federal Reserve leaders including Powell have maintained their focus on data-driven decisions because of concerns about inflation risks that stem from tariffs. The Federal Reserve has maintained its interest rates at a steady position since December while exercising caution about rapid rate cuts.
Legal experts have maintained that Fed chairs enjoy protection from dismissal except in cases of cause but Trump’s ongoing threats against Powell challenge this established precedent. The appointment process would need Senate approval to trigger a major political and monetary conflict.
