Does Trump Already Have a 'Choice' to Replace Powell?
US President Donald Trump said he has a "pretty clear picture" of who he wants to be the next Fed Chair. However, he still stated that he will review several candidates before making a final decision. He made this statement to reporters aboard Air Force One on Tuesday.
According to a Financial Times report, the current favorite is Kevin Hassett, Director of the White House National Economic Council. He is said to be the strongest candidate to replace Jerome Powell as Fed Chair. However, Hassett's position is not yet "definitely secure," as Trump is said to be keeping his options open and has not yet finalized a name.
Trump and Treasury Secretary Scott Bessent are scheduled to meet with former Fed Chair Kevin Warsh on Wednesday. They are also reportedly planning at least one more interview with another candidate next week. White House Chief of Staff Susie Wiles is also said to be likely to attend these meetings.
White House spokesman Kush Desai emphasized that any decision regarding who will be chosen as Fed Chair will be announced solely by President Trump. He said all speculation The rumors circulating before the official announcement were merely "guesses" that shouldn't be relied upon. Besides Hassett and Warsh, other candidates on the list include Fed Governors Christopher Waller and Michelle Bowman, as well as BlackRock executive Rick Rieder.
One idea that was briefly discussed was the possibility of Hassett's term being shorter than usual. Typically, seats on the Fed's Board of Governors serve 14 years. However, reports suggest Hassett proposed a different scheme: instead of filling the newly vacant seat at the end of January, he would replace Powell directly and serve out the remainder of Powell's term until 2028. Powell's term as Fed Chair expires in May 2026, after which he would have the option to remain on the Board for another two years or step down early.
Source: Bloomberg.com
