Trump administation narrows list of potential Federal Reserve chairs to 5

WASHINGTON (AP) — Treasury Secretary Scott Bessent on Monday confirmed the names of five candidates to replace Jerome Powell as chair of the powerful Federal Reserve next year.

On an Air Force One flight to Asia with President Donald Trump, Bessent said he would engage in a second round of interviews in the coming weeks and present a “good slate” of candidates to Trump “right after Thanksgiving.” Trump said he expected to decide on Powell's replacement by the end of this year.

The five people under consideration are: Federal Reserve governors Christopher Waller and Michelle Bowman; former Fed governor Kevin Warsh; White House economic adviser Kevin Hassett; and Rick Rieder, senior managing director at asset manager BlackRock.

The names suggest that no matter who is picked, there will likely be big changes coming to the Federal Reserve next year. Bessent, who is leading the search for Powell's replacement, last month published extensive criticisms of the Fed and some of the policies it has pursued from the Great Financial Crisis of 2008-2009 to the pandemic.

Trump on Monday, meanwhile, repeated his long-standing attacks on Powell, charging that he has been too slow to cut interest rates.

“We have a person that’s not at all smart right now," Trump said, referring to Powell. “He should have been much lower, much sooner.” The Fed is expected to lower its key rate Wednesday for the second time this year.

Trump's goal of selecting a new chair by the end of this year could reflect some of the tricky elements surrounding Powell's status. His term as chair ends next May, but he could remain on the Fed's board as one of seven governors until January 2028, an unusual but not entirely unprecedented step. Such a move would deprive Trump of an opportunity to nominate another governor for several years.

Still, current governor Stephen Miran was appointed by Trump Sept. 16 to finish an unexpired term that ends next Jan. 31. Trump could nominate his candidate to replace Powell for that seat, and then elevate that person to chair in May after Powell steps down.

Hassett is currently the chair of the National Economic Council at the White House and was also a top Trump adviser in the president's first term, and a frequent defender of the administration's policies on television. His longtime loyalty to the president could give him an edge, some Fed watchers say.

Warsh is a former economic advisor in the George W. Bush administration and was appointed to the Fed's governing board in 2006 at age 35, making him the youngest Fed governor in history. He left the board in 2011. Warsh is now a fellow at the Hoover Institution and a lecturer at the Stanford Graduate School of Business.