— U.S. President Donald Trump is weighing three finalists to lead the Federal Reserve after criticizing current Chair Jerome Powell for not cutting interest rates. The contenders are Fed Governor Christopher Waller (66), White House economic director Kevin Hassett (63), and former Fed Governor Kevin Warsh (55); Treasury Secretary Scott Bessent has called for a broad review of Fed practices as the administration interviews candidates.
Key Takeaways
- Trump is considering three candidates to replace Jerome Powell as Fed chair.
- Christopher Waller, Kevin Hassett and Kevin Warsh each bring different policy histories and views on rate cuts.
- Online betting markets assign varying odds: Waller leads in some markets, Hassett and Warsh trail.
- Treasury Secretary Scott Bessent has urged a full review of how the Fed sets policy and manages operations.
- Debate centers on the timing of rate cuts, Fed independence and the central bank’s role in financial stability.
Verified Facts
President Trump has narrowed his list to three finalists to succeed Jerome Powell, according to reporting on Sept. 6, 2025. The administration is actively interviewing candidates and consulting advisers as it evaluates possible nominees.
Christopher Waller, 66, currently serves as a Federal Reserve governor after joining the Board in 2020. He was earlier at the St. Louis Fed and gained attention for advocating rate hikes in 2021 to combat inflation. This year he has been among the Fed policymakers urging cuts sooner than some colleagues; online betting markets (Polymarket, Kalshi) show Waller with roughly 27–28% odds in some contracts.
Kevin Hassett, 63, is director of the National Economic Council and a long‑time Republican economic adviser. He supports many of the administration’s trade and fiscal positions and has publicly criticized the Fed’s pace on rate moves. Betting markets indicate varied support for Hassett, with odds in the high teens to around 30% depending on the exchange.
Kevin Warsh, 55, served as a Fed governor from 2006 and later joined Stanford’s Hoover Institution. He has been a vocal critic of some Fed crisis tools and favors changes that would limit the central bank’s fiscal‑style interventions. Markets give Warsh lower odds than Waller and Hassett in the cited contracts.
Context & Impact
The choice of Fed chair matters for monetary policy direction. Trump has pushed for earlier and larger rate cuts than the current Fed leadership delivered, making a nominee’s views on cutting rates a central evaluation criterion.
A new chair aligned with the administration could speed easing, affecting borrowing costs, markets and inflation expectations. Conversely, choosing a candidate perceived as politically motivated could raise concerns about Fed independence and unsettle investors.
Scott Bessent’s call for a comprehensive review of Fed operations — from interest‑rate setting to internal security arrangements — signals the White House is framing the selection as both a policy and institutional reform opportunity.
Market participants will watch nominee hearings closely. Any explicit commitment to rapid easing could bolster equities and credit markets, while doubts about central bank autonomy could increase longer‑term risk premia.
Official Statements
“We need to examine how the central bank carries out its mandate, from policy decisions to the way it organizes its operations,”
Scott Bessent, U.S. Treasury
Unconfirmed
- No formal nomination has been filed with the Senate; a final decision remains pending.
- Market odds cited are from online prediction platforms and can change rapidly.
- Reports of a planned replacement or specific personnel moves remain unverified until an official White House announcement.
Bottom Line
The Trump administration’s shortlist highlights a clear priority: a Fed leadership change that would pursue earlier rate cuts and institutional reviews. The final decision will shape U.S. monetary policy direction and test the balance between political priorities and central bank independence.