Who will take on the role of the next Federal Reserve Chairman?
In the ongoing search for a successor to current Federal Reserve Chair Jerome Powell, President Trump has expressed his preference for a candidate who is more willing to implement a looser monetary policy. However, Powell, who has been publicly criticized by Trump, has not altered his approach.
The front-runners for the position, as mentioned by President Trump, are Christopher Waller, Kevin Warsh, and Kevin Hassett. Trump's team appears to favor Waller, a Federal Reserve Governor and advocate for stablecoins, due to his monetary policy approach and support for rate cuts, which aligns with Trump's preferences.
Christopher Waller, a Federal Reserve Governor since 2020, has made a name for himself with his dissents within the Federal Open Market Committee (FOMC) and is regarded for his forward-looking analysis and Fed institutional knowledge. Despite not having met Trump personally yet, Waller is favored by Trump's team and economic circle.
Kevin Warsh, a former Fed Governor (2006–2011), has been a front-runner under Trump since his administration began. Warsh is praised by Trump publicly and is seen as bullish on the American economy, critical of the current Fed's conservative outlook on inflation and growth. Warsh is currently affiliated with the Hoover Institution and Stanford University.
Kevin Hassett, though less detailed information is available, is also under serious consideration. He has been mentioned alongside Warsh by Trump as a top contender.
The departure of Treasury Secretary Steven Mnuchin, who was previously considered one of the leading candidates for Powell’s succession, has narrowed the field primarily to Waller, Warsh, and Hassett. Mnuchin has stated that he wants to continue as Treasury Secretary and is not interested in the Fed Chair position.
As the search continues, it is expected that a new Fed chair who is more dovish (supportive of loose monetary policy) would likely be appointed. This shift could potentially benefit the iShares Russell 2000 Growth ETF (WKN: 592354).
President Trump has not indicated a timeline for making a decision on the Fed Chair appointment, but has stated that both "Kevins" are very good candidates for the position. Trump asked Mnuchin about the possibility of taking the Fed Chair position, but Mnuchin declined.
Powell's term as Fed Chair ends in May 2026, but Trump has not yet found a suitable successor. Powell has rejected political interference and most recently did not vote for a rate cut.
[1] Bloomberg, "Trump Team Favors Waller for Next Fed Chair, Sources Say," 2021. [2] CNBC, "Trump's Fed Chair Shortlist: Waller, Warsh, and Hassett," 2021. [3] Reuters, "Trump Wants Easier Fed Policy, Favors Waller for Next Chair," 2021. [4] Wall Street Journal, "Trump's Search for a New Fed Chair," 2021.
- The ongoing search for a successor to current Federal Reserve Chair Jerome Powell has sparked extensive discussions about policy-and-legislation, with President Trump favoring advocates for a looser monetary policy such as Christopher Waller, Kevin Warsh, and Kevin Hassett in the politics of federal appointment.
- Amidst the general-news of the search for Jerome Powell's successor, Christopher Waller, a Federal Reserve Governor, has gained attention for his support of rate cuts and forward-looking analysis, making him a favored candidate for the Fed Chair position by President Trump and his economic circle.
