President Donald Trump indicated on Wednesday that he will likely nominate a temporary Federal Reserve governor to fill the upcoming vacancy on the Fed’s board in the next few days, rather than immediately naming a permanent replacement or signaling his choice for Fed Chair.
“We’re probably going to go with the temp and then a permanent,” Trump told reporters at the White House. “I think the temp is going to be named, I’d say, over the next two, three days, and then we’re going to go permanent.”
The vacancy arises after Fed Governor Adriana Kugler announced last week she will step down effective August 8. This leaves Trump with the option to appoint someone temporarily to serve out the remainder of her term, which ends in January, while he continues to consider his pick for Fed Chair, or alternatively, to move quickly and name a permanent replacement now.
Several candidates on Trump’s short list are outsiders, and the president may not get another opportunity to appoint a board member before Jerome Powell’s chairmanship ends in May. While Fed Chairs usually resign from the board upon stepping down, Powell’s term as governor runs through 2028, and he has not disclosed his intentions, potentially limiting Trump’s openings.
Advisors have urged Trump to choose a temporary nominee first to fill Kugler’s seat and allow additional time for the chair selection process—a strategy Trump said he is leaning toward.
Trump mentioned he is considering “probably” three candidates for the temporary role, potentially from Wall Street. “Yeah, essentially, we’re all from Wall Street, aren’t we, when you get right down to it?” he said.
He also noted that Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Vice President JD Vance are involved in advising him on the decision.
Separately, Trump reaffirmed that “the two Kevins”—former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett—remain his top contenders for the Fed Chair position once it becomes available.
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