President Donald Trump has officially trimmed down his list of potential candidates to succeed Jerome Powell as chair of the Federal Reserve, and Treasury Secretary Scott Bessent is no longer in the running, according to a report published by The Associated Press on Wednesday.
“I love Scott, but he wants to stay where he is,” Trump said Tuesday in an interview on CNBC’s Squawk Box.
Consequently, two names that now appear at the top of Trump’s list include director of the National Economic Council Kevin Hassett and Kevin Warsh, a former member of the Fed’s Board of Governors. “I think Kevin and Kevin, both Kevins, are very good,” Trump said, while also mentioning that the other two individuals remain in contention, although he didn’t name them.
Trump Keeps Pressure on Powell
The US president’s comments come amid his growing frustration with Powell, whose term as Fed chair runs through May 2026. Trump has frequently slammed the current Fed chairperson for not cutting interest rates aggressively enough, often referring to him as “too late,” “a numbskull” and even “a complete moron.”
While Trump has publicly floated the idea of removing Powell early, legal constraints following an earlier Supreme Court ruling make such a move difficult without cause. Still, Trump has accused Powell of mishandling the Fed’s $2.5 billion renovation project and continues to question his performance.
Surprise Opening at the Fed
The sudden resignation of Fed Governor Adriana Kugler last Friday created a new opening, giving Trump an opportunity to seek to influence the central bank’s direction even before choosing a new chair. He told CNBC that his pick to replace Kugler “could also be” his eventual choice for Fed chair, as reported by The Associated Press.
“I’ll be making that decision before the end of the week,” Trump reportedly said.
Who is in the Running?
Kevin Hassett
A longtime Trump ally, Hassett chaired the Council of Economic Advisers during Trump’s first term in office and now leads the National Economic Council. He is known for backing income tax cuts, tariffs and even BLS Commissioner Erika McEntarfer’s removal.
He told CNBC on Monday, “All over the US government, there have been people who have been resisting Trump everywhere they can.”
Kevin Warsh
Warsh left the Fed in 2011 and now works at Stanford’s Hoover Institution. He has been critical of Powell’s leadership and favours rate cuts.
Speaking on Fox News on an earlier ocassion, he had said, “The president is right to be frustrated with Jay Powell and the Federal Reserve.”
He also told CNBC that the Fed’s hesitance to act was a “mark against them,” while arguing, “We need regime change in the conduct of policy.”
Trump added in June, “He is very highly thought of,” when asked about Warsh.
