Who Will Replace FED Chair Jerome Powell? Donald Trump’s Shortlist Just Dropped

Tensions between former President Donald TRUMP and Federal Reserve Chair Jerome Powell have escalated as Powell's term approaches its May 2026 conclusion. Trump, reportedly frustrated with the Fed's sluggish pace on interest rate cuts, is considering an early announcement of a replacement—a move that could subject the nominee to heightened scrutiny and diminish their chances of confirmation.

During a NATO summit press conference, Trump revealed he has narrowed the field to "three or four people." Leading contenders include loyalists Kevin Warsh, Kevin Hassett, Chris Waller, and David Malpass, with Scott Bessent emerging as a dark horse. These candidates are viewed as more amenable to Trump's agenda of aggressive rate cuts and economic stimulus.

The political calculus remains delicate. Premature nomination risks politicizing the selection process, potentially destabilizing markets already sensitive to monetary policy signals. Powell’s measured approach—once a buffer against inflation—now clashes with Trump’s demand for rapid fiscal loosening.