Internal discussions reveal a split among Donald Trump’s advisors about how to fill future Federal Reserve Commission vacancies. Some are advocating for temporary appointees while others suggest that the president engage with trusted successors to Chairman Jerome Powell.
Federal Reserve Governor Adriana Coogler plans to resign on August 8, holding a position that is set to expire in January 2026. Some officials are in favor of appointing interim members, while others see this as an opportunity for the president to position someone capable of taking over when Powell’s term as chair ends in May.
Kevin Hassett, the director of the National Economic Council and a former chair of the Economic Advisors Council, has emerged as a top candidate in this context. Advisors argue that selecting Hassett would ensure continuity and help facilitate a smooth leadership transition, especially if Powell decides not to step down as a governor. While Powell’s role as chairman concludes next spring, his membership on the board extends until January 2028, and there are arguments suggesting he might choose to remain, despite it breaking previous norms.
Trump noted this week that Hassett is among the shortlist for the chairman position, along with current Fed governors Christopher Waller and Michelle Bowman.
Additionally, Trump mentioned Treasury Secretary Scott Bescent, stating he is not currently considering him for the chair role. Still, some in the administration believe that a resignation from Powell next year wouldn’t eliminate Bescent from contention. There are many within the White House who perceive that Trump has an affinity for Bescent’s capabilities, and some advisors hint that he could eventually be a contender if circumstances align.
Potential candidates for the interim position include Stephen Milan, the chairman of the Council of Economic Advisors, who boasts private sector and currency experience. Advisors believe his background in markets and trade policy would fill a current gap on the board, particularly with regard to inflation caused by tariffs. Michael Faulkender, the current assistant secretary of the Treasury and former assistant secretary for economic policy who was instrumental in implementing pay protection programs, is also under consideration. Another name mentioned is Casey Mulligan, currently serving as lead counsel for Small Business Administration advocacy. He’s an economist from the University of Chicago and previously worked as Chief Economist on the Council of Economic Advisors.
James Fishback is another name circulating for the placeholder position; he is a former hedge fund analyst advocating for a more populist, rule-based monetary policy approach.
Even if the White House acts swiftly to select candidates, it may not be possible to finalize decisions before the Fed’s next policy meeting in September, which could hinder participation in upcoming meetings this November and December.
Trump expressed a desire to make an announcement this week. Coogler’s unexpected exit offers the administration a chance to reshape the central bank’s leadership in advance of the chair transition in 2026. An extra vote won’t immediately alter policies, but it could amplify the influence of more dovish perspectives within the Federal Open Market Committee. Notably, at the July meeting, Waller and Bowman opposed the majority—marking the first time since 1993 that two governors voted against the prevailing view but advocated for interest rate reductions.
Powell and the committee maintained their rates at the July meetings, consistent throughout 2025. By June, many Fed officials were leaning toward reducing rates twice by the year’s close. Trump has been vocally critical of the Fed’s approach, arguing that high interest rates hinder economic growth and inflate government borrowing costs.
Whether the president appoints a temporary placeholder or a probable chair, the choice for Coogler’s position provides initial insight into Trump’s plans for reshaping the Fed’s policies in a potential second term.
