Trump names possible replacements for Federal reserve chair

President Donald Trump recently shared that he has a shortlist of three or four candidates to take over as Federal Reserve Chair when Jerome Powell’s term ends in May 2026. Speaking at a NATO summit in the Netherlands, Trump called Powell’s performance “terrible” and expressed frustration over the Fed’s decision to keep interest rates steady, despite his push for cuts to boost the economy.

Trump has often criticized Powell, whom he appointed during his first term, for not lowering rates, which are currently between 4.25% and 4.5%. He believes lower rates would save the U.S. billions annually and fuel growth. However, Powell has emphasized the need to monitor inflation, especially with Trump’s tariff policies, which could raise consumer prices.

Powell told Congress that the Fed is waiting for clearer economic data before making changes. While Trump has hinted at replacing Powell earlier, a Supreme Court ruling last month limits his ability to remove the Fed chair without cause, like misconduct. Some analysts suggest Trump’s public comments are an attempt to pressure the Fed into cutting rates sooner.

Possible candidates to replace Powell include Treasury Secretary Scott Bessent and former Fed governor Kevin Warsh, though Trump didn’t name them directly. As Powell’s term nears its end, Trump’s choice for the next Fed chair will likely shape the nation’s economic path.