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Chairpersons

Treasury Secretary Shortlists 11 Candidates for US Federal Reserve Chair

Strategic Insights

— 1 min read

Treasury Secretary Scott Bessent has narrowed down the list of candidates to replace US Federal Reserve Chair Jay Powell, who is set to leave office in May 2026. The shortlist features a mix of current and former senior central bankers, as well as Wall Street figures, including National Economic Council chair Kevin Hassett, former Fed governor Kevin Warsh, and Fed governor Christopher Waller. Despite President Trump's public criticism of Powell, the three frontrunners for the job are all establishment figures. The Treasury Secretary is pushing for a significant reduction in interest rates, but Powell has expressed concerns that cutting rates too quickly could lead to inflation.

Key Takeaways:

  • The shortlist of 11 candidates includes current and former senior central bankers, as well as Wall Street figures.
  • The three frontrunners for the job are National Economic Council chair Kevin Hassett, former Fed governor Kevin Warsh, and Fed governor Christopher Waller.
  • President Trump has publicly criticized Powell, but the three frontrunners for the job are all establishment figures.
  • The Treasury Secretary is pushing for a significant reduction in interest rates, with administration officials recommending a 0.5 percentage point cut.
  • Powell's term as Fed chair is set to end in May 2026.
  • The Fed has not made a decision on interest rates, but a cool inflation reading for July has raised the prospect of a 0.25 percentage point cut in September.
  • Other candidates on the shortlist include Fed vice-chairs Michelle Bowman and Philip Jefferson, Lorie Logan, head of the Dallas Fed, and Marc Sumerlin, a former economic adviser to President George W Bush.

Statistics:

  • The current interest rate is 4.25 to 4.5 per cent.
  • The Treasury Secretary is pushing for a significant reduction in interest rates to just 1 per cent.
  • Powell's term as Fed chair is set to end in May 2026.
  • The Fed has not made a decision on interest rates, but a cool inflation reading for July has raised the prospect of a 0.25 percentage point cut in September.

Sources:

  • A senior Treasury official
  • CNBC
  • The Wall Street Journal (names mentioned but no direct link)
  • Administration officials, including Treasury Secretary Scott Bessent
  • President Trump
  • Fed governor Christopher Waller
  • National Economic Council chair Kevin Hassett
  • Former Fed governor Kevin Warsh
  • Fed vice-chairs Michelle Bowman and Philip Jefferson
  • Lorie Logan, head of the Dallas Fed
  • Marc Sumerlin, former economic adviser to President George W Bush

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