President Trump Has Three Names in Mind to Replace Fed Chair Jerome Powell

President Donald Trump laid out his preferences for the Federal Reserve’s top job on Friday, naming three individuals he sees as strong contenders to take over from Jerome Powell when the current chair’s term expires in May 2026.

In a direct exchange with reporters, Trump outlined his thinking: “I am considering former Fed board member Kevin Warsh, current Fed board member Christopher Waller, and National Economic Council Director Kevin Hassett for the role.”

The timing of this disclosure aligns with mounting frustration over the Fed’s recent decisions. Trump has not held back in expressing his dissatisfaction with Powell, whom he appointed in 2017 but later accused of moving too slowly on rate cuts. Just this week, following a disappointing jobs report, Trump took to Truth Social to label Powell “Jerome ‘Too Late’ Powell,” arguing he “should have lowered rates long ago.”

Critics within Trump’s circle, including Treasury Secretary Scott Bessent, have echoed this sentiment, pointing to the central bank’s policies as a drag on growth amid cooling inflation and sluggish hiring. Bessent himself was once in the mix for the chairmanship but has chosen to stay put at Treasury, clearing the path for these other names. With Powell’s departure on the horizon, Trump’s shortlist signals a push toward appointees who could align more closely with an agenda prioritizing rapid economic expansion.

Among the frontrunners is Kevin Hassett, currently steering the National Economic Council as its director. Hassett brings a wealth of experience from his time in Trump’s first term, where he chaired the Council of Economic Advisers from 2017 to 2019. During that stint, he championed tax cuts and deregulation as engines for job creation and wage growth, often clashing with establishment economists who favored more cautious fiscal paths. A conservative thinker with roots in academia—he taught economics at Columbia University—Hassett has long argued for policies that unleash private sector potential without overreliance on government intervention.

Trump’s nod to Hassett in the quote highlights a trusted insider who understands the president’s vision for America First economics. If selected, Hassett could steer the Fed toward a more accommodative stance on rates, potentially easing borrowing costs for businesses and families at a pivotal moment for recovery.

Kevin Warsh, the former Fed board member referenced in Trump’s remarks, offers a blend of insider knowledge and independent streak that could appeal to those seeking reform at the central bank. Warsh served on the Federal Reserve Board of Governors from 2006 to 2011, a period that included the height of the financial crisis. There, he played a key role in crisis response but also voiced concerns about the Fed’s growing balance sheet and its drift into fiscal territory, advocating for a return to core monetary functions.

Before joining the Fed, Warsh worked as a special assistant to President George W. Bush on economic policy and later at Morgan Stanley. Now a distinguished visiting fellow at Stanford’s Hoover Institution, he has been floated as a Fed chair candidate before, including in 2017 during Trump’s initial search. By including Warsh in his shortlist, as Trump explicitly stated, the president appears to value someone with proven crisis chops who might prioritize transparency and restraint over expansive interventions—qualities that could temper the Fed’s recent rate-hiking fervor.

Rounding out the trio is Christopher Waller, the current Fed board member whom Trump himself nominated in 2020. Waller’s path to the central bank was unconventional for a governor: a Midwestern economist with a blue-collar upbringing, he spent years as a professor at Notre Dame and as executive vice president at the Federal Reserve Bank of St. Louis, focusing on monetary theory and payments systems.

Unlike some ivory-tower academics, Waller’s practical bent—rooted in degrees from Washington State University and early work in rural banking—has made him a voice for real-world economic pressures. His inclusion in Trump’s quoted list suggests continuity with past appointments, but also an opportunity for elevation. As someone already embedded in the Fed’s structure, Waller could facilitate a smoother transition while potentially advocating for the rate relief Trump has demanded.

This selection process reflects broader tensions between the White House and the Fed, where Trump’s push for lower rates clashes with Powell’s data-dependent approach. Each of these candidates—Hassett with his policy advocacy, Warsh with his governance experience, and Waller with his institutional insight—brings elements that could reshape monetary policy in ways more attuned to the administration’s goals.

As the May deadline approaches, the choice will carry weighty implications for everything from mortgage rates to stock markets, underscoring Trump’s determination to imprint his economic priorities on one of the nation’s most powerful institutions.