U.S. Treasury Secretary Scott Bessent announced on Air Force One that he has narrowed down the list of candidates to replace Federal Reserve Chairman Jerome Powell to five, according to The Wall Street Journal.
Some of these candidates are connected to central banks and the White House, while others have affiliations with major Wall Street figures.
President Donald Trump hasn’t held back on his criticism of Powell, referring to him as a “stubborn idiot” and “Jerome too slow” in various social media posts and public statements. Powell’s term runs until May 15, 2026. Bessent plans to update Trump on the nominee in detail post-Thanksgiving.
FOX Business is also considering potential stocks ahead of the upcoming Federal Reserve meeting in October, where a 25-basis-point interest rate cut is anticipated, lowering the target range to 3.75% to 4%. This adjustment follows a similar cut made at the Fed’s September meeting. Another reduction of the same magnitude is expected at the December meeting.
Here’s a quick alphabetical rundown of some candidates:
Michelle Bowman
Fed Governor David Bowman, who also acts as vice chair for oversight, was an early dissenter during the July meeting, advocating for future interest rate strategies until the year’s end.
Kevin Hassett
Hassett is in his second round with Trump, currently serving as the Chairman of the National Economic Council. Previously, he was a senior advisor and chair of the Council of Economic Advisers in the first Trump administration. He noted that recent consumer inflation figures, which rose by 3% annually, were lower than expected, indicating that costs may be decreasing.
“We expect inflation to slow down, which should ease any pressures on the Fed,” he remarked during an interview with FOX Business.
Rick Rieder
As BlackRock’s Chief Investment Officer for Global Fixed Income, Rieder oversees a substantial $3.2 trillion in client assets. He expressed his thoughts on the nomination when asked in an August interview, revealing a sense of honor at the possibility of serving in a significant role.
“It’s a powerful driver, this notion of serving your country,” he reflected, emphasizing the impact of monetary policy and its economic effects.
Christopher Waller
Waller was another dissenter in July, standing alongside Bowman. They faced criticism for delaying interest rate cuts in the face of rising inflation and a cooling labor market, suggesting some underlying discord within the Fed.
Kevin Warsh
The former Fed president has been a prominent critic of the institution, reflecting on its track record: “I think their history has been quite poor regarding economic growth predictions and inflation forecasts.” He added that this delay in responding to inflation has significantly impacted hardworking Americans.
