Treasury Secretary Confirms Five Candidates to Replace Federal Reserve Chair Powell

Treasury Secretary Scott Bessent confirmed today a list of five candidates being considered to succeed Jerome Powell as chair of the Federal Reserve next year, signaling potential significant shifts in the central bank’s policies.

The candidates include current Federal Reserve governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, White House economic advisor Kevin Hassett, and Rick Rieder, a senior managing director at BlackRock. Bessent, speaking on an Air Force One flight with President Donald Trump, stated he will conduct a second round of interviews in the coming weeks and present his recommendations to the President “right after Thanksgiving,” with Trump anticipating a decision by year’s end. This selection process is closely watched as the Federal Reserve plays a crucial role in managing the nation’s economy and influencing global financial markets.

President Trump reiterated his criticisms of Powell today, claiming he has been “too slow to cut interest rates,” stating, “We have a person that’s not at all smart right now.” The Fed is expected to lower its key rate Wednesday for the second time this year. The timing of a new appointment is complicated by Powell’s term as chair ending next May, though he could potentially remain on the Fed’s board until 2028. For more information on the Federal Reserve’s structure and functions, see the Federal Reserve Board website.

Several candidates bring distinct backgrounds to the table; Hassett’s loyalty to the President and Rieder’s extensive financial markets experience are noted by observers. Bessent has also publicly criticized the Fed’s ongoing use of unconventional policies, arguing for a “scaling back of its distortionary impact on markets.” These criticisms come amid ongoing debate about the Fed’s response to recent inflationary pressures, as detailed in a recent Brookings Institution analysis.

Officials indicated that Trump’s goal of a decision by the end of the year reflects the complexities surrounding Powell’s position, and the administration is prepared to navigate potential scenarios regarding his future role within the Federal Reserve.