What's happened
As the US approaches a key Fed leadership transition, multiple candidates are being considered, including Federal Reserve officials and political figures. President Trump is eager to replace Jerome Powell before his term ends in May 2026, amid ongoing debates over monetary policy and economic outlooks.
What's behind the headline?
The emerging list of candidates reflects a strategic effort by the Trump administration to influence monetary policy during a period of economic uncertainty. Waller, a Fed governor with a history of dissenting from rate hikes, is seen as a strong contender due to his experience and alignment with the administration's views. Meanwhile, Kevin Hassett, a former economic advisor, remains a key figure, with some speculation that he could be appointed to steer policy in a more pro-growth direction. Trump's public comments, including his criticism of Powell and the Fed's spending, reveal a desire for a more aggressive approach to rate cuts and economic stimulation. The potential appointment of a new Fed chair could significantly impact markets, interest rates, and the broader economy, especially if the new leader adopts a more dovish stance. The political implications are also notable, as the choice may influence upcoming elections and the administration's economic agenda.
What the papers say
Business Insider UK reports that President Trump is actively considering replacing Jerome Powell, with several candidates including Fed officials and political figures. The article highlights Waller's recent meetings with the White House and his market-leading position as a potential successor. The NY Post adds that Trump remains eager to make a decision before Christmas, with Kevin Hassett and Kevin Warsh among the finalists. Trump’s public remarks, including his criticism of Powell and the Fed's spending on headquarters renovations, underscore his desire for a leadership change. The articles collectively suggest that the political and economic stakes are high, with the administration seeking a candidate who aligns with its growth and rate-cutting priorities.
How we got here
The US Federal Reserve's leadership is under scrutiny as President Trump considers replacing Chair Jerome Powell before his term concludes in May 2026. Several candidates, including current Fed officials and political advisors, are in the running, with the selection process influenced by economic conditions and political pressures. The debate over interest rate policies and economic stability has intensified as the administration seeks a candidate with experience and a clear vision for the future.
Go deeper
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Jerome Hayden "Jay" Powell is the 16th Chair of the Federal Reserve, serving in that office since February 2018. He was nominated to the Fed Chair position by President Donald Trump, and confirmed by the United States Senate.
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Christopher J. Waller is an American economist who is a member of the Federal Reserve Board of Governors. Waller was nominated to and confirmed as a member of the Board of Governors in December 2020.