As President Donald Trump continues his campaign for a second term, he has made it clear that he plans to replace Federal Reserve Chair Jerome Powell if re-elected. With Powell’s term ending in May 2026, speculation is mounting around who Trump will nominate — and what direction that would take U.S. monetary policy.
Leading Candidates to Replace Powell
- Kevin Warsh
A former Federal Reserve governor who served during the 2008 financial crisis, Warsh is seen as a top contender. He is well-connected in conservative economic circles and known for supporting market-friendly, pro-growth policies — aligning with Trump’s preference for a more accommodative monetary stance. - Scott Bessent
Trump’s current Treasury Secretary and a former hedge fund executive, Bessent is deeply involved in shaping the administration’s economic strategy. He has proposed having a “shadow Fed chair” to guide expectations even before Powell’s term ends, indicating an assertive approach to policy influence. - Chris Waller
Currently serving as a Federal Reserve Governor, Waller has leaned dovish in recent months, calling for interest rate cuts. His policy outlook closely mirrors Trump’s priorities, making him a viable candidate for the top role if Trump seeks continuity with someone already inside the Fed system. - Kevin Hassett
Although less likely, former White House economic adviser Kevin Hassett has been floated as a potential pick. However, his more pragmatic and data-driven approach may not align as tightly with Trump’s aggressive economic goals.
Why Announce a Pick Early?
Trump is reportedly considering naming his choice for Fed Chair before Powell’s term ends — possibly even in late 2025 — in a strategic move to influence interest rate expectations, support market confidence, and promote economic momentum heading into 2026.
Final Thought
The next Federal Reserve Chair will play a crucial role in shaping the post-inflation economy. Trump’s favored candidates—Warsh, Bessent, and Waller—suggest a pivot toward lower interest rates and pro-growth monetary policy. Whether this reshapes the Fed’s traditionally independent role remains to be seen, but the stakes for markets and the economy are undeniably high.
