- President Trump’s search for a new Fed Chair has reportedly narrowed to a few contenders
- Former Governor Kevin Warsh and NEC Director Kevin Hassett have emerged as frontrunners
- The move comes amid Trump’s escalating public criticism of current Chair Jerome Powell
President Donald Trump’s search for a new Federal Reserve Chair has zeroed in on the ‘Two Kevins,’ former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett, as the leading candidates to replace Jerome Powell. The sped-up selection process reflects the mounting tension between the White House and the central bank over interest rates.
Trump’s growing impatience with Powell’s data-driven caution was made clear during a recent NATO press briefing, where he openly criticized the Fed Chair’s performance. By floating potential replacements now, the administration is signaling its firm intent to install new leadership at the earliest opportunity.
Trump’s Shortlisted Candidates
According to recent statements to reporters, President Trump has identified three or four potential replacements for Powell and expects to make a formal announcement by late summer or early fall.
The Wall Street Journal report named former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett as the leading contenders. Meanwhile, Treasury Secretary Scott Bessent is also reportedly under consideration for the top job at the central bank. The early timeline has fueled the idea that Trump may be trying to create a “shadow Fed chair” to influence monetary policy ahead of a formal transition.
Related: Commerce Secretary Howard Lutnick Uses Tariff ‘Windfall’ to Pressure Jerome Powell
Why Is the White House Criticizing Powell?
The move to name a successor comes as Trump has been openly critical of Powell’s leadership. During a recent NATO summit press briefing, Trump described the Fed Chair as “very stupid” and “average mentally,” expressing clear dissatisfaction with the central bank’s hesitance to cut interest rates more aggressively.
This criticism is part of a broader administration-wide push, with figures like Commerce Secretary Howard Lutnick recently arguing that high tariff revenues have created the perfect conditions for the Fed to lower rates and stimulate the economy.
How Is the Market Reacting?
Despite the intense political pressure, prediction markets are signaling a low probability that Powell will be removed from his post before his term ends.
Data from Polymarket shows the chance of Powell’s removal in 2025 currently stands at just 13%, a figure that has remained relatively stable over the past several months. While the market’s odds have seen brief spikes, they generally reflect doubt about an imminent, forced leadership change at the Fed.
What Is Powell’s Stance?
For his part, Chair Powell has maintained a strictly data-driven and cautious approach. In recent Congressional testimony, he acknowledged that new tariffs might contribute to future inflation but noted that no significant price impact has yet materialized.
Related: Powell’s Testimony This Week May Shift Fed Outlook, Impact Crypto
He emphasized that the Fed’s decisions will be guided by a comprehensive assessment of economic conditions, leaving open the possibility of rate cuts later in 2025 only if there is a clear reduction in inflation or a significant weakening in the labor market. This stance stands in stark contrast to the administration’s public demands for immediate rate cuts.
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