- Trump says Fed Chair Jerome Powell will be replaced soon, calling him “incompetent.”
- Five finalists — including Waller, Bowman, Hassett, Warsh, and Rieder — are under consideration.
- A Fed rate cut is expected this week — here is why Trump’s remarks could reshape future policy direction.
During a business dinner in Tokyo, U.S. President Donald Trump said there’s a “long list” of candidates being considered to replace Federal Reserve Chair Jerome Powell, whose term ends in May. Trump didn’t mince words, calling Powell “incompetent” and confirming that a new appointment could come “in a few months.” His remarks come as the Fed begins its policy meeting this week, where a second rate cut of the year is widely expected.
Potential Successors to Lead the Fed
According to Treasury Secretary Scott Bessent, five finalists have emerged for the top central bank role: Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder. Both Waller and Bowman currently serve as Fed governors, while Rieder manages BlackRock’s massive bond portfolio. Bessent confirmed that he plans to present Trump with the final shortlist by December, leaving ample time for a nomination before Powell’s term expires.
Political Pressure Ahead of Fed’s Rate Decision
The comments come amid growing political pressure on the Fed to continue monetary easing as the U.S. economy shows signs of cooling. Jobless claims are climbing, inflation is easing, and analysts expect another 0.25% rate cut to prevent further labor market deterioration. Trump’s criticism reinforces speculation that the administration wants a more dovish Fed heading into 2026.
What Comes Next
While Powell’s future appears sealed, his successor could determine how aggressively the Fed cuts rates in the coming year. Trump’s shortlist suggests he’s seeking a loyalist who supports lower rates and pro-growth policies. For now, all eyes are on this week’s Fed meeting — and how Trump’s comments might shape the tone of U.S. monetary policy going forward.
