Treasury Secretary Scott Bessent has indicated there are five potential candidates to succeed Federal Reserve Chairman Jerome Powell when President Donald Trump’s term concludes in May 2026.
On Air Force One, Bessent mentioned to reporters that Trump is contemplating appointing one of the following: Kevin Hassett, Kevin Warsh, Michelle Bowman, Christopher Waller, or Rick Rieder. The position of Federal Reserve Chairman has a four-year term, which can be renewed. Trump has expressed a desire to replace Powell, perceiving him as an obstacle to achieving his economic goals and helping the struggling American middle class under President Biden.
All the contenders are recognized as inflation hawks who generally favor lower interest rates. However, their stances on Trump’s ambitious economic policies vary — particularly regarding lowering rates to encourage growth, cut debt service costs, and support tariffs.
Trump has stated he aims to decide on the next Fed chairman by year’s end. Bessent shared the list of five finalists during the flight:
- Governor Christopher Waller
- Governor Michelle Bowman
- Former Federal Reserve President Kevin Warsh
- NEC Director…
Kevin Hassett (White House Economic Advisor):
Hassett, who served as Trump’s economic advisor and led the National Economic Council, emerges as a strong candidate for the Fed chair position. He has voiced concerns that Powell’s interest rates should be significantly lower. He attributes Powell’s reluctance to cut rates to partisanship among the Fed’s leadership.
Hassett publicly supports political independence for the Fed, yet his alignment with Trump’s economic strategies—including tariffs—suggests he would likely prioritize rate cuts to stimulate economic growth. He previously advocated for policies aimed at middle-class growth, including the Tax Cuts and Jobs Act of 2017, which he believed would boost investment and profit for the middle class.
Kevin Hassett is a kind and intelligent person. As Chairman of the Council of Economic Advisers, he has been instrumental in promoting the administration’s pro-growth economic policies and lifting up America’s hardworking families.
Kevin was a dear friend and will be missed! Thank you for his service!
— Ivanka Trump
Thus, Hassett is likely to advocate for policies aimed at enhancing middle-class growth.
Kevin Warsh (former Federal Reserve Governor):
Warsh previously served on the Fed’s Board and has also criticized the current decision not to cut rates. He has suggested that the Fed needs to move away from outdated data for its monetary policy. He emphasized that excessive government involvement could hinder price stability and full employment.
Warsh has historically supported free trade, which contrasts with Trump’s tariff policies. His less favorable view on aggressive fiscal strategies makes him somewhat less sympathetic to the middle-class-focused policies that Hassett promotes.
Michelle Bowman (current Federal Reserve President):
Bowman, appointed by Trump in 2018, has indicated a readiness to raise rates to combat inflation if the 2% target isn’t met, which runs counter to Trump’s preference for substantial rate cuts. While she may not fully align with Trump’s approach, her goal of maintaining full employment and economic stability seems to resonate with his aim of aiding the middle class.
Christopher Waller (current Fed Governor):
Appointed by Trump in 2020, Waller has supported significant rate hikes to counter inflation. Like Bowman, he favors gradual adjustments to interest rates, which could align somewhat with Trump’s desire to lower rates. Yet, his position that government data should be cautiously considered sits at odds with Warsh’s perspective on data reliability.
Fed President Christopher Waller: “We need to start cutting rates at our next meeting…We could see multiple rate cuts over the next three to six months.”
He acknowledges the inflationary impacts of tariffs but aims for prudent cuts to reduce labor market risks. However, his focus on stable growth doesn’t inherently promote a middle-class economic boom.
Rick Rieder (BlackRock executive):
As an outsider compared to the others, Rieder has not held a federal position, coming instead from a background in the private sector as BlackRock’s chief investment officer. He aligns with Trump’s economic ideas, noting that high Fed rates may drive inflation while hampering middle-class growth. Yet, like Waller, he is wary about tariffs’ inflationary effects, despite advocating for rate cuts.
Rieder’s perspective emphasizes market growth rather than specifically focusing on middle-class policies, suggesting he could diverge from advancing programs beneficial to lower-income Americans.
Overall, of the five candidates, Hassett appears most keen on promoting middle-class economic growth. If appointed, his chairmanship could closely align with Trump’s financial strategies aimed at elevating the middle class.
