Trump considers Powell’s deputies for Fed Chair after end of term

The US administration expanded its search for a successor to Federal Reserve Chair Jerome Powell to include his two deputies, Michelle Bowman and Philip Jefferson, as well as Dallas Federal Reserve President Lorie Logan.

Treasury Secretary Scott Bessent is leading the search for a Powell’s replacement, Bloomberg reported, citing well-informed sources. Powell has faced repeated criticism from President Donald Trump since the start of his second term in January over his reluctance to lower interest rates.

Previously known candidates on the shortlist include National Economic Council Director Kevin Hassett, former Federal Reserve Board Governor Kevin Warsh, and current Board member Christopher Waller. The list also features St. Louis Fed President James Bullard and Marc Sumerlin, former economic adviser to President George W. Bush.

Hassett, Warsh, Waller, and Bowman have all expressed support for cutting interest rates, with Waller and Bowman opposing the Fed’s decision to keep rates unchanged at its July meeting. By contrast, Logan adopted a more hawkish stance, recently questioning the merits of rate cuts in the face of persistent inflation. Jefferson, meanwhile, has given no indication of any policy differences with Powell.

Powell’s term as Fed Chair is set to expire in May next year; however, his term as a member of the Board of Governors runs until 2028, allowing him the option to remain on the Board beyond his chairmanship.