Trump Narrows Fed Chair Shortlist Amid Criticism of Powell’s Rate Policy

Former President Donald TRUMP has narrowed his selection for Federal Reserve chair to three or four candidates, though he has yet to disclose their identities. Interviews will reportedly be led by Treasury Secretary Scott Bessent. Trump hinted he may announce a successor before Jay Powell's term concludes in May 2026.

Three names frequently mentioned as contenders include Kevin Hassett of the National Economic Council, former Fed governor Kevin Warsh, and current Fed board member Christopher Waller. Trump praised them as "great" candidates while dismissing eight others under consideration as unlikely choices.

Trump escalated his criticism of Powell during recent remarks, labeling him a "moron" and "numbskull" for maintaining higher interest rates. The former president claims Powell's reluctance to cut rates has damaged the economy and advocates for slashing rates to 1%, far below the current 4.25%-4.5% range.

July's softer inflation data and sluggish employment figures have intensified pressure on monetary policy. Trump attributes economic headwinds to Powell's delayed rate cuts and the lingering effects of trade wars, despite Powell's warnings that premature easing could fuel inflation amid ongoing tariff pressures.