- Trump confirmed Kevin Warsh and Kevin Hassett are finalists to replace Powell as Fed chair in 2026, with two other unnamed contenders.
- Treasury Secretary Scott Bessent is not in the running, preferring to stay in his current role.
- Adriana Kugler’s early departure from the Fed board gives Trump another appointment to shape the Fed’s policy stance toward rate cuts.
President Donald Trump said he has narrowed his shortlist to four candidates to replace Federal Reserve Chair Jerome Powell when his term ends in May 2026. Speaking on CNBC’s Squawk Box on Aug. 5, Trump confirmed that Kevin Warsh, a former Fed governor, and Kevin Hassett, his current National Economic Council director, are among the contenders. He declined to name the other two but made it clear that Treasury Secretary Scott Bessent is not in the running, saying Bessent prefers to remain in his current role.
Trump has frequently criticized Powell over the Fed’s decision to keep interest rates steady despite his calls for aggressive cuts. While Trump has repeatedly hinted at the possibility of firing Powell, he has so far held back, framing the upcoming end of Powell’s chairmanship as an opportunity for change. Powell’s board term runs until late 2028, even though his chairmanship expires in 2026.
Upcoming Vacancy at the Federal Reserve Board
Trump will soon have another seat to fill at the Fed after Adriana Kugler announced she will step down before her term ends in January 2026. Kugler, appointed by former President Joe Biden in 2023, is leaving early, which Trump called a “pleasant surprise.” He said he will announce her replacement “very shortly,” signaling his intent to place more rate-cut-friendly members on the board.
Rate Cuts Still at the Center of the Debate
For months, Trump has complained that Powell is ignoring his push for lower interest rates, which he argues would stimulate the economy. He has floated the idea of cutting rates significantly, framing it as a boost for borrowing and economic growth. With both the Fed chairmanship and at least one other board seat on the table, Trump has a clear path to influence the Fed’s policy direction more directly in the coming years.
