The selection process for the next Federal Reserve Chair is nearing a critical stage, with Treasury Secretary Scott Bessent reportedly narrowing down the field of candidates to five individuals. This decision carries significant weight, as the Federal Reserve’s monetary policy decisions profoundly impact the U.S. economy and global financial markets. President Donald Trump’s involvement is expected to increase as the pool of potential nominees is further refined.
### Potential Candidates Emerge for Fed Leadership
The current Federal Reserve system is led by Chairman Jerome Powell, whose tenure extends until May 2026. President Trump has previously expressed dissatisfaction with Powell’s approach to interest rate policy, advocating for quicker rate reductions and at times employing strong public criticism. While Trump considered replacing Powell previously, he ultimately retained him in the role. The current vetting process aims to identify a successor who aligns with the administration’s economic objectives, particularly regarding regulatory reform and monetary policy.
Among the individuals reportedly under consideration is **Michelle Bowman**, who currently serves as the Vice Chair for Supervision at the Federal Reserve. This role involves significant oversight of the central bank’s regulatory framework, a focus area that resonates with President Trump’s agenda. Notably, Bowman has recently diverged from Powell’s stance, calling for interest rate cuts. If confirmed, she would be the second woman to lead the Federal Reserve, following Janet Yellen.
Another candidate reportedly being considered is **Christopher Waller**, a current member of the Fed’s governing board. Waller has also voiced support for rate cuts, citing slowing consumer spending and job market gains as potential justifications. He has suggested that the Fed should “look through tariff effects” in its inflation assessments, indicating a pragmatic approach to external economic influences. Waller is described as an experienced academic within the potential nominee group and has emphasized the importance of maintaining the Federal Reserve’s independence.
**Kevin Hassett**, a former top economic advisor to President Trump and currently the Director of the White House’s National Economic Council, is also reported to be on the shortlist. Hassett has a history of supporting Trump’s economic policies and was a key advisor during the 2024 presidential campaign. President Trump has previously spoken favorably of Hassett’s potential as a successor.
Also mentioned as a candidate is **Kevin Warsh**, a former member of the Federal Reserve Board of Governors. Warsh, an ex-Morgan Stanley banker, was previously considered a leading contender to replace Janet Yellen in 2018. He also served as an economic advisor to President George W. Bush and played a significant role as the Fed’s liaison to Wall Street during the 2008 financial crisis. Warsh was also reportedly considered for Treasury Secretary in a potential second Trump administration.
The ultimate decision rests with President Trump, with input from Treasury Secretary Bessent. The selection of the next Federal Reserve Chair will be closely watched for its potential implications on inflation, economic growth, and financial market stability.
Jonathan Reed received his MA in Journalism from Columbia University and has reported on corporate governance and leadership for major business magazines. His coverage focuses on executive decision-making, startup innovation, and the evolving role of technology in driving business growth.