The search for the next Federal Reserve Chair has gained attention as Jerome Powell’s term nears its end in May 2026. Several names have emerged as potential candidates, based on recent reports and posts on X:
Scott Bessent: Currently the U.S. Treasury Secretary, Bessent has been increasingly mentioned as a contender. Bloomberg reported that advisers inside and outside the Trump administration are pushing his name, citing his role in shaping economic policy and his credibility in financial circles. However, some argue his expertise lies more in fiscal policy than monetary policy.
Kevin Warsh: A former Fed governor (2006–2011), Warsh is seen as a frontrunner due to his experience during the 2008 financial crisis and his alignment with Trump’s economic views. He has criticized the Fed’s recent policies and called for a “strategic reset.” Trump reportedly considered him for Treasury Secretary and has spoken positively of him.
Christopher Waller: A current Fed governor, Waller is viewed as a potential internal candidate. He has expressed support for near-term interest rate cuts, aligning with Trump’s calls for looser monetary policy, which could make him a favorable pick.
Michelle Bowman: Another current Fed governor, Bowman has been mentioned as a possible candidate, especially if Powell were demoted but remained a governor. Trump has indicated plans to nominate her for Vice Chair, which could position her as a contender for the top role.
Kevin Hassett: As the current director of the White House National Economic Council, Hassett’s name has been floated due to his conservative credentials and prior advisory roles. However, his past caution against firing Powell could complicate his nomination.
Judy Shelton: Previously nominated by Trump for a Fed governor role (withdrawn under Biden), Shelton is a long-shot candidate known for advocating a return to the gold standard.
Howard Lutnick: Mentioned in a post on X as aiming for the role, though no major reports confirm him as a leading contender.
Context and Considerations:
Powell’s term as Chair expires in May 2026, and President Trump has expressed dissatisfaction with his refusal to cut interest rates aggressively, fueling speculation about an early replacement. However, removing Powell before his term ends is legally complex, requiring “cause” (e.g., misconduct, not policy disagreements).
Trump has stated a decision on the next Chair could come “very soon,” potentially causing market uncertainty if a “shadow” Chair is named early.
The next Chair will need to balance the Fed’s independence with political pressures, especially given Trump’s public desire for lower rates. Candidates like Warsh and Bessent are seen as likely to preserve Fed credibility while aligning with Trump’s economic goals.
The nomination process involves the President selecting a candidate from the Board of Governors (or appointing a new governor), with Senate confirmation required.
Note: Information from X posts, such as those mentioning Bessent or Lutnick, should be treated as inconclusive without broader confirmation from reliable sources. The candidacy of Chamath Palihapitiya, mentioned in one post, appears speculative and lacks credible backing.
No formal interviews have started, but the White House is expected to begin this process in fall 2025, according to Treasury Secretary Bessent. For the latest updates, check reputable financial news sources or official statements from the White House.