US Narrows Shortlist for Fed Chair – Trump Wants a Quick Decision and Pushes for Rate Cuts

The White House announced on Wednesday that President Donald Trump has narrowed his list of candidates for the next Federal Reserve Chair to “three or four” key individuals. At the same time, the US Treasury Department confirmed that a total of 11 applicants will undergo formal interviews. These will be conducted by Treasury Secretary Scott Bessent, with Trump indicating he may name his preferred successor before current Fed Chair Jerome Powell’s term ends in May 2026.

Favorites and the wider pool of candidates The most frequently mentioned names are: Kevin Hassett – Director of the National Economic Council,Kevin Warsh – Former Fed Governor,Christopher Waller – Current Fed Board Governor. Trump has called them “great candidates.” Another eight contenders – including David Zervos of Jefferies, Larry Lindsey, and Rick Rieder from BlackRock – will also be interviewed, though analysts believe they are unlikely to seriously challenge the frontrunners. Also on the list are Michelle Bowman, Philip Jefferson, Lorie Logan, James Bullard, and Marc Sumerlin, though their chances are slim. For instance, Philip Jefferson was nominated by Joe Biden, which lowers his prospects under a Trump administration.

Trump’s sharp criticism of Powell Trump once again launched a scathing attack on Powell, calling him a “fool” and “idiot,” accusing him of damaging the economy by delaying interest rate cuts. The president wants rates reduced down to 1% (from the current 4.25–4.50%) as soon as possible. His administration is pushing for a 0.5 percentage point cut at the Fed’s September meeting. Trump blames Powell for starting the rate cuts too late in 2024 and says tariffs have further worsened the situation. Powell, however, has argued that cutting rates too quickly could reignite inflation.

Divisions inside the Fed In July, the Fed kept rates unchanged, even though Michelle Bowman and Christopher Waller voted for a modest 0.25% cut. They argued that weaker labor data warranted a faster response. The rest of the Federal Open Market Committee opted to wait. Shortly afterward, the Labor Department revised employment figures downward – growth in May and June was weaker than initially reported, and July’s numbers missed expectations. Trump accused the department of data manipulation and dismissed the responsible commissioner. Scott Bessent, however, used the figures to argue the Fed now has room to accelerate monetary easing.

Other voices and economic outlook Former St. Louis Fed President James Bullard told CNBC that the Fed should cut rates by a full percentage point by mid-next year.

Also on the list is Marc Sumerlin, a Bush-era adviser who was considered for the role in 2017 before Powell was chosen. Chicago Fed President Austan Goolsbee warned that the impact of tariffs remains unclear and expects heated debates at autumn meetings. He stressed that timing is critical – getting it wrong during transitional phases can have serious consequences.

He plans to wait for wholesale price data this week and broader inflation figures next month before deciding whether to support tariff cuts. Goolsbee also downplayed concerns over July’s weaker jobs data, linking it more to falling immigration than to structural labor market problems.

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