President Trump has identified three candidates as frontrunners to replace Jerome Powell as Federal Reserve chair: his advisor Kevin Hassett, former Fed governor Kevin Warsh, and sitting Fed governor Christopher Waller.At the White House, Trump told reporters that Scott Bessent was initially considered, but the Treasury secretary declined interest. “I had four,” Trump said. “Now I’m talking about three. He (Bessent) told me: ‘I’m not leaving.’”
Who are the three in running?
Dr Kevin Hassett currently serves as Director of the National Economic Council in the United States. He was previously the 29th Chairman of the President’s Council of Economic Advisers from 2017 to 2019 and was later recalled to the White House as a Senior Advisor to President Trump to guide data-driven decisions in response to the Coronavirus.Kevin M Warsh was sworn in as a member of the Board of Governors of the Federal Reserve System on February 24, 2006, and served until March 31, 2011. Born in Albany, New York, Warsh earned a bachelor’s degree with honors in public policy, focusing on economics and statistics, from Stanford University in 1992. He then attended Harvard Law School, where he studied the intersection of law, economics, and regulatory policy, receiving his law degree in 1995.Christopher J Waller took office as a member of the Board of Governors of the Federal Reserve System on December 18, 2020, filling an unexpired term ending January 31, 2030. Before joining the Board, Dr Waller was executive vice president and director of research at the Federal Reserve Bank of St. Louis from 2009. He also served as a professor and held the Gilbert F. Schaefer Chair of Economics at the University of Notre Dame.
What do Trump, aides want?
Trump is reportedly seeking a Fed chairman who will support his agenda for faster interest rate reductions, according to Reuters. He has repeatedly criticised Powell for delaying action on borrowing costs, which he says has contributed to higher mortgage rates for homebuyers.Powell’s Federal Reserve has maintained steady rates throughout the year—initially due to concerns that Trump’s tariffs could fuel inflation, and more recently in response to a weakening employment market.Kevin Warsh has long advocated for fundamental changes in Federal Reserve leadership, while Waller, who led research at the St. Louis Fed before being appointed Fed governor in 2020 by Trump, is considered a conventional choice.Bessent, on Friday, launched a comprehensive critique of the Federal Reserve, calling for a thorough review of its personnel, research functions, and monetary policy decisions.
