Former President Donald Trump has narrowed the list of potential candidates for the next chair of the Federal Reserve to four individuals. Scott Bessent, who many considered the leading contender, has signaled his strong desire to not seek the position. His timely public statement moves the spotlight onto other entirely unqualified candidates.
In a surprise move, though, Trump appeared to announce in a statement late last week that Bessent had chosen to stay in his current position. “Well, I love Scott, but he wants to stay where he is,” Trump remarked. The former president went much further. He said that he called Bessent to inquire about his interest in the Fed chair position only last night. Bessent responded with a clear rejection of the offer, saying, “Nope, I want to stay where I am. He actually said, ‘I want to work with you.’”
With Bessent stepping aside, Trump has highlighted two prominent candidates: Kevin Warsh and Kevin Hassett. Warsh, you may recall, is a former Fed governor and a widely respected, if narrowly-focused, voice on economic policy. In the meantime, Hassett has become director of the National Economic Council, but continues to be a key advisor to Trump. Both nominees are considered to be formidable candidates in the nomination battle to put a new Fed chair in place.
In an interview with Politico this week, Trump admitted that he’s looking beyond those candidates to fill the role. That means he’s looking far and wide even among his close friends for the best candidate. “Both Kevins are very good, and there are other people that are very good, too,” he stated.
This means that Powell’s current term – served by current Federal Reserve Chair Jerome Powell – may expire in May 2026. In 2017, Donald Trump nominated Powell to be the new chair. Since then, he’s been a harsh critic of Powell’s leadership, particularly on his monetary policy decisions. The central bank recently lowered its policy rate by one percentage point from September through December 2024, a move Trump contends was politically motivated to benefit Democratic presidential nominee Kamala Harris.
There has been much, not to say overheated, speculation about Trump’s plans for Powell’s job. Insiders warn, however, that Trump will likely appoint a “shadow chair” to kneecap Powell’s authority or ensure he acts in the meantime until Powell’s term ends. But unlike past presidents, Trump has released the names of potential nominees to Fed chair.
The political landscape surrounding the Federal Reserve remains dynamic as both Trump and various candidates prepare for what could be a significant shift in monetary policy leadership.