Trump Reveals Shortlist for Fed Chair Successor, Excludes Treasury Secretary Bessent

On Tuesday, U.S. President Donald Trump stated that he has a shortlist of four candidates in mind to succeed Jerome Powell as Chairman of the Federal Reserve. Notably, he mentioned that U.S. Treasury Secretary Scott Bessent will not be in the running, having expressed a desire to continue in his current role after a conversation with Trump the previous evening. Trump remarked positively about Bessent, saying, "Well, I love Scott, but he wants to stay where he is."

Reports suggest that among the candidates Trump is considering are former Federal Reserve Governor Kevin Warsh and Kevin Hassett, the director of the National Economic Council. While Trump highlighted that both of these candidates are strong options, he refrained from revealing the entire list of potential successors. Trump's statements come in the context of Powell's term, which is set to extend until May 2026, despite criticisms regarding his monetary policy from Trump and his supporters earlier this year.

In light of the unexpected resignation of Federal Reserve Governor Adriana Kugler, which takes effect on Friday, there is now an opportunity for Trump to appoint someone to the Fed's board. Currently, the Federal Reserve comprises seven board members, and as it stands, no other members are set to leave their positions before Powell's term culminates. The website of the Fed outlines that board members are nominated by the President and require Senate approval, while both the chair and vice chairs are also nominated from the board’s members and subjected to Senate confirmation.