Trump Narrows Fed Chair Search to Four Candidates as Powell Era Nears Crossroads

President Donald Trump has revealed that his shortlist for the next Federal Reserve Chair is down to four individuals, a move that signals a potential turning point in U.S. monetary policy leadership.

In a recent CNBC interview, Trump confirmed that two prominent names under serious consideration are Kevin Hassett and Kevin Warsh, though he declined to name the other two contenders.

Trump praised both Hassett, the current Director of the National Economic Council, and Warsh, a former Federal Reserve Governor, saying, “Kevin and Kevin, both Kevins, are very good.” He also ruled out Treasury Secretary Scott Bessent as a candidate, stating that Bessent prefers to stay in his current role.

Shifting Tone Toward Powell

Trump’s evolving stance comes after years of tension with current Fed Chair Jerome Powell, whom he has criticized for being too slow on interest rate cuts. Although Trump previously floated the idea of removing Powell, he now acknowledges legal constraints following a Supreme Court ruling that bars firing a Fed chair without cause.

Still, his public criticisms continue. Trump recently accused Powell of mismanaging the central bank’s resources, pointing to a $2.5 billion Fed renovation project as evidence of poor oversight.

Strategic Openings Following Fed Governor Resignation

The recent departure of Fed Governor Adriana Kugler has created an opening Trump may use to realign the Fed’s leadership. When asked if her replacement could ultimately become chair, Trump replied, “It’s a possibility,” hinting at a broader strategy to shape the future of U.S. monetary policy.

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Meet the Frontrunners

Kevin Hassett, a longtime Trump ally and former chairman of the Council of Economic Advisers, has deep roots in conservative economic circles. He returned to the White House during the pandemic to help craft economic policy and has been vocal about bureaucratic resistance to Trump’s agenda. His current leadership of the National Economic Council positions him at the core of the administration’s economic planning.

Kevin Warsh, now a senior fellow at the Hoover Institution, has emerged as one of Powell’s most prominent critics. A former Fed governor until 2011, Warsh has pushed for faster interest rate reductions and recently proposed a modern Treasury-Fed accord to better align central bank actions with national economic goals. Trump has described Warsh as “very highly thought of,” reinforcing speculation that he may be a leading contender.

As Trump prepares for a possible second term, reshaping the Federal Reserve could become a defining move in his broader economic agenda.