Trump narrows down Fed chair candidates to 3: Report
What's the story
United States President Donald Trump has shortlisted three candidates to succeed Jerome Powell as the chair of the Federal Reserve. The contenders are White House economic adviser Kevin Hassett, Federal Reserve Governor Christopher Waller, and former Fed Governor Kevin Warsh. "You could say those are the top three," Trump said in an interview with reporters in the Oval Office.
Search underway
Treasury Secretary leading search, but rules himself out
Treasury Secretary Scott Bessent is leading the search for Powell's replacement. However, Bessent has ruled himself out of contention for the position. "I'm the only person on the planet who does not want the job," he said. The timeline for selecting a new chair is still unclear as interviews are yet to be scheduled with all candidates.
Rate cuts
Fed considering rate cut after holding since December
The Federal Reserve is considering lowering interest rates after keeping them steady since December. Powell has indicated that labor market risks are becoming more important than inflation worries. A weak employment report on Friday increased expectations of a rate cut at the upcoming September meeting. Trump has often criticized Powell for not cutting rates as he wanted and blamed the Fed's inaction for disappointing economic reports.
Candidate views
Contenders for Fed chair position
Waller, who was appointed to the Fed by Trump in 2020, has been a proponent of policy easing and dissented against a July decision not to cut rates. Hassett, currently Trump's chief economic adviser, supports Trump's tariffs and has echoed his criticism of the Powell-led Fed. Warsh, appointed by President George W. Bush in 2006, has been critical of the Fed's bond-buying program and called for reform through rate cuts.