President Trump is moving closer to naming a successor to Federal Reserve Chair Jerome Powell, as his frustration with the central bank chief continues to grow.
Speaking to reporters on Wednesday, Trump said he’s narrowed the field. “I know within three or four people who I’m going to pick,“ he remarked, without revealing specific names.
According to two individuals familiar with the matter who spoke to Yahoo Finance, the list of potential candidates includes former Fed governor Kevin Warsh, National Economic Council director Kevin Hassett, Treasury Secretary Scott Bessent, former World Bank president David Malpass, and Fed governor Christopher Waller.
The Wall Street Journal reported late Wednesday that Trump could name his final choice as early as this summer — or by September or October — in what may be an attempt to diminish Powell’s authority ahead of the end of his term in May 2026. The Journal also confirmed the roster of contenders.
Steve Moore, a longtime adviser to the president, told Yahoo Finance that Trump wants to make the announcement “sometime soon,” and views it as “a shot over the bow at Powell.” He confirmed Warsh, Hassett, Bessent, and Malpass are under serious consideration, but said Waller is not because he voted to keep rates steady at the Fed’s most recent meeting.
Another individual close to the administration added that “late September is possible timing for an announcement,” and noted that “Bessent, Hassett, Waller and Malpass are under consideration but that the president is souring on Warsh.”
A White House official emphasized that “no Fed chairman decisions are imminent,” but acknowledged the president “has the right to change his mind and he has many good options for the post.”
This isn’t the first time talk of an early Powell replacement has surfaced. Back in 2024, before Trump’s reelection, Bessent floated the idea of appointing a “shadow chair” to preemptively erode Powell’s influence, saying it would ensure that “no one is really going to care what Jerome Powell has to say anymore.”
Earlier this month, Bessent testified before Congress that he would like to remain in his current position through 2029, though he didn’t rule out taking on the Fed chair role. He told lawmakers he has “the best job” in Washington and is “happy to do what President Trump wants me to do,” while also stating, “I would like to stay in my seat through 2029” to help carry out the administration’s agenda.
Council of Economic Advisers chair Stephen Miran downplayed any risks tied to the idea of a “shadow” chair during a Thursday interview with Yahoo Finance. Miran also recounted a past interaction with Powell, mocking him and launching personal attacks, saying, “I think he’s a very stupid person actually” and calling him “an average mentally person.”
Following the Fed’s June 18–19 meeting — in which all members voted to hold rates steady for a fourth consecutive time — Trump is far from alone in pushing for rate cuts.
Fed governors Michelle Bowman and Christopher Waller have both indicated that recent soft inflation data could support a rate cut as early as the Fed’s next policy meeting in July.
Others, however, are urging caution. Some policymakers argue it’s too early to assess the full inflationary impact of new tariffs.
Federal Reserve Bank of Richmond President Thomas Barkin said Thursday that tariffs are likely to boost inflation in the coming months, although “I don’t expect the impact on inflation to be anywhere near as significant as what we just experienced” during the COVID-19 pandemic.
Amid all the speculation, Trump has even joked about taking the job himself. One lawmaker asked Powell on Tuesday whether such a move was even possible.
“I don’t know,” Powell replied. He added that it’s “not a question for me.”
Powell has not indicated whether he plans to step down from the Fed’s board after his term as chair ends in May 2026. His term as a Fed governor runs through 2028.
On both Tuesday and Wednesday, Powell avoided commenting directly on Trump, his policies, or the president’s repeated personal jabs.
“All I want to do in what’s left of my time at the Fed is to have the economy be strong and have inflation be under control. I want to turn it over to my successor in that condition.”
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