Key points

President Trump is considering legal action against Federal Reserve Chairman Powell, while several candidates, including Chris Waller, are expected to be successors.

According to White House Press Secretary Caroline Levitt, President Donald Trump is considering legal action against Federal Reserve Chairman Jerome Powell.

On August 12, Trump revealed that he was considering a major lawsuit against Powell.

This highlights the increasing tension among central bank leadership.

Trump commented on this,

“Fortunately, the economic situation is very good, and we have gotten rid of Powell and the complacent board.”

He further stated,

“However, I am considering allowing a major lawsuit against Powell because he has done a terrible job managing the construction of the Federal Reserve building and is extremely incompetent.”

Who will be the next Federal Reserve Chairman?

According to recent reports from CNBC, the Trump administration is assessing a broad and diverse list of candidates.

Names receiving widespread attention include BlackRock's Global Chief Investment Officer of Fixed Income, Rick Rieder, who has publicly supported interest rate cuts.

He has joined the growing list of candidates along with Jefferies Chief Market Strategist David Zervos and former Federal Reserve Governor Larry Lindsey.

Reportedly, other potential candidates include current Federal Reserve officials such as Federal Reserve Vice Chair for Supervision Michelle Bowman, Federal Reserve Governor Chris Waller, and Vice Chair Philip Jefferson.

It is reported that Marc Summerlin, Dallas Fed President Lorie Logan, and former St. Louis Fed President James Bullard are also under consideration.

President Trump has confirmed 'the two Kevins' — Kevin Warsh and Kevin Hassett — will continue to run.

Due to the broad range of areas involved, the choice of Powell's successor could signify a critical shift in U.S. monetary policy, particularly as debates over interest rates and economic strategy continue to dominate the financial landscape.

Given the prolonged review process, it is expected that President Trump will not announce a new Federal Reserve Chairman anytime soon, effectively ruling out the prospect of a 'shadow Federal Reserve'.#美联储何时降息？

What is Polymarket's suggestion?

However, market sentiment indicates that Federal Reserve Governor Chris Waller is the leading candidate for Federal Reserve Chairman. Notably, Polymarket data shows his probability of being elected is 27.5%.

This speculation coincides with the Federal Reserve's latest actions, as it kept interest rates unchanged at 4.25-4.5%, aligning with expectations following the release of the June core CPI data of 0.3%.

Moving forward, stable interest rates and the debate over Powell's successor highlight the government's delicate task of guiding U.S. monetary policy.