Trump to Announce Fed Governor Replacement Amid Speculation Over Powell’s Succession

President TRUMP will name a replacement this week for Federal Reserve Governor Adriana Kugler, whose abrupt resignation takes effect Friday. The move opens a critical opportunity to shape the central bank's leadership ahead of Chair Jerome Powell's potential departure next year.

Kevin Warsh, a former Fed governor, and Kevin Hassett, current chair of the Council of Economic Advisors, emerge as leading candidates. Treasury Secretary Scott Bessent is reportedly considering nominees who could later contend for Powell's chairmanship when his term expires in May 2024.

The WHITE House anticipates Powell may vacate his board seat entirely despite his governor term extending to 2028. This would grant Trump a second appointment to influence monetary policy direction during a period of heightened scrutiny over the Fed's balance sheet normalization and inflation management strategies.