On October 27, Treasury Secretary Scott Bessent said that President Donald Trump has narrowed down his search to replace Federal Reserve chair Jerome Powell, whose term does not end until May 2026.
Powell, who has butted heads with Trump over lowering interest rates amid the risk of increasing inflation, has said he will serve out the remainder of his term. After his term ends as chairman, his board term still extends until 2028.
Trump is expected to announce a Federal Reserve chair replacement as early as December, according to reports.
“We’re down to five,” Bessent told reporters as he was traveling with Trump on Air Force One, according to Yahoo Finance. “We’re going to do a second round and we hope to present a good slate to the president right after Thanksgiving. . . . It will ultimately be his choice.”
Bessent said those five picks are: Michelle Bowman and Christopher Waller, both members of the Federal Reserve’s board of governers; Kevin Hassett, director of the National Economic Council; Kevin Warsh, a former Fed governor; and Rick Rieder, chief investment officer of global fixed income at BlackRock, according to several media outlets per CNBC.
Trump’s choice must be confirmed by the Republican-controlled Senate. Like Powell, the new Fed chair will be charged with navigating inflation, the country’s weakening labor market, and stagnating growth. Fed members remain divided on whether the Trump administration’s economic policies, including high tariffs and a push for even lower interest rates, are helping or hurting the U.S. economy, CNN noted.
Powell first became Fed chair in February 2018 and was reappointed for a second four-year term in May 2022. His term as a member of the Fed’s board of governors ends on January 31, 2028.
Last month, he explained the Fed’s dilemma when it comes to cutting or raising interest rates: whether to use it to fight inflation or instead to help offset a struggling job market (while controlling prices and unemployment).
“We only have one tool, which is monetary policy—really, interest rates—and [the situation] is calling for different answers,” Powell said. “It’s a very difficult policy environment when your two goals are telling you two different things, you’ve got to make a compromise.”