The United States Treasury Secretary, Scott Bessent, confirmed this Tuesday, August 19, that 11 candidates are being considered to succeed the current Federal Reserve Chair, Jerome Powell, whose term ends in May 2026.
The Donald Trump administration believes that the current interest rates are negatively affecting the housing market, low-income households, and the servicing of the growing national debt, which exceeds 37 trillion dollars.
Bessent even suggested that the Central Bank should cut rates by 50 basis points, twice what the market currently expects, to boost housing construction and control future inflation.
According to the head of the economic portfolio, the candidates come from both the current Federal Reserve and the private sector. The final selection will be presented to President Trump, who has shown a critical attitude toward the banking entity and is pressing for a correction in monetary policy.
Michelle Bowman
Current Federal Reserve Governor. She was originally appointed in 2018 and reconfirmed in 2020. She is the first person with community banking experience to hold a seat reserved for representatives of that sector on the Board of Governors.
With a conservative orientation in monetary policy, Bowman has consistently expressed her concerns about inflationary risks and has advocated for a more prudent interest rate policy. She has also defended maintaining the Federal Reserve's independence from political pressures.
Her approach usually prioritizes price stability and the health of regional banks, highlighting the importance of a strong banking system to support rural communities and small businesses.
She has been perceived as an institutional official who respects internal processes. Her technical expertise and moderate profile make her a serious candidate to succeed Powell.
Christopher Waller
He has been a Federal Reserve Governor since 2020 and previously served as Director of Research at the St. Louis Federal Reserve. With a solid academic background and a generally moderate stance, Waller has supported rate cuts when economic conditions justify them, although he has also acknowledged the need to control inflation.
He is an advocate of transparency in monetary policy communication and has demonstrated openness to the use of unconventional tools if necessary.
Kevin Hassett
He is an economist and current Director of the National Economic Council at the White House. Previously, he was Chair of the Council of Economic Advisers during Trump's first term.
With a solid academic background and a pro-market approach, Hassett is known for his advocacy of tax cuts, deregulation, and economic stimulus policies.
He has been a key figure in designing the 2017 tax reform and keeps a critical stance toward Federal Reserve decisions that, in his view, have limited economic growth. Close to President Trump, his profile is clearly political and aligned with the current administration's economic vision.
Kevin Warsh
Former Federal Reserve Governor (2006–2011) and key economic adviser during the 2008 financial crisis. With experience on Wall Street and in government, Warsh is recognized for his critical approach to prolonged expansionary monetary policy and his emphasis on price stability.
He has advocated for greater transparency and accountability at the Fed. Close to Republican circles, he was already considered by Trump as a possible chair of the central banking entity in 2018.
