Trump stated on Tuesday that he will finalize the successor to Federal Reserve Governor Quarles before the end of this weekend (Quarles is leaving on Friday, and the initial term of the successor is until January next year, with a full 14-year term requiring Senate approval). He also revealed that the list of candidates for Federal Reserve Chair (Powell will step down in May next year) has been narrowed down to four, including economic advisor Hassett and former Federal Reserve Governor Warsh, with two other names not disclosed, leading to speculation that one is current Governor Waller.

Treasury Secretary Mnuchin has withdrawn from consideration for the Chair position. Trump called Quarles' early departure an "unexpected surprise," stating that he could nominate a successor to complete the remaining term, and then nominate them for the full term to replace Powell, giving the nominee time to influence policy.

Trump has consistently criticized Powell for not lowering interest rates and even considered firing him. The current Federal Reserve faces policy dilemmas amid economic slowdown, weak employment, and high inflation, maintaining the interest rate at 4.25%-4.50% last week, with Waller dissenting.

Additionally, on the day Quarles left, Trump fired the head of the Bureau of Labor Statistics due to slowing job growth data, accusing him of manipulating data, raising concerns about the integrity of U.S. data. Economists warned that Trump's policies, including tariffs, could exacerbate the slowdown in the labor market and inflation, which is one of the reasons the Federal Reserve is not lowering interest rates for now. Experts believe that Trump's selection of heads of relevant agencies will be scrutinized closely, and if the appointee is seen as a puppet Federal Reserve Chair, the consequences could be severe.