Trump’s Federal Reserve Chair Bet: Weighing Political Pressure Against Economic Trustworthiness

On Tuesday, President Donald Trump revealed that he has chosen a potential successor for the Federal Reserve chair, highlighting his growing impatience with the slow process of replacing current chair Jerome Powell

. "I believe I have my pick," Trump stated to journalists in the Oval Office, though he withheld the name. The president has consistently voiced his dissatisfaction with Powell, criticizing what he perceives as an excessively cautious stance on reducing interest rates—a criticism that as the Fed faces increasing calls to address a weakening economy.

The search, overseen by Treasury Secretary Scott Bessent, has been narrowed to a group that includes both expected and surprising names. Those reportedly being considered include current Fed Governors Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock Inc. executive Rick Rieder

. Trump suggested he is weighing both political and economic considerations, commenting, "We might go with the usual choice. Sometimes it’s good to take the politically correct route." following the Thanksgiving break.

The urgency to find a replacement is driven by Powell’s term as chair ending in May 2026, though he could remain a Fed governor until 2028

. Trump’s push to accelerate Powell’s departure has met with internal opposition, the process. The president has also shown interest in Bessent taking the Fed position, but the Treasury secretary has chosen to stay in his current role .

The Fed’s leadership is already undergoing changes, as Stephen Miran is set to replace Adriana Kugler, who

. Miran, who is currently on unpaid leave from the White House Council of Economic Advisers, could participate in the Federal Open Market Committee’s September session if confirmed soon . His potential impact on rate policy matches the administration’s desire for more decisive rate reductions, especially as jobless claims reach their highest level in four years and labor market indicators weaken .

At the same time, ongoing legal disputes over Fed leadership add further complications. The Trump administration is attempting to oust Governor Lisa Cook through an emergency court filing, involving properties in Atlanta and Michigan. Cook has rejected the allegations, referencing documents that list one property as a "vacation home" and emphasizing she has not claimed it as her main residence for tax reasons .

Choosing the next Fed chair will require carefully balancing Trump’s demand for rapid rate reductions with the need to maintain investor confidence. Rieder, who stands out as an unconventional candidate without a doctorate in economics, has become a prominent option in the selection process.

with Trump’s public statements, though his selection would break with the Fed’s tradition of academic credentials.

As the administration moves toward a final decision, the ongoing reshuffling at the Fed highlights the broader tension between political influence and economic stability. With the September interest rate decision approaching, the central bank’s upcoming actions will challenge its ability to balance Trump’s goals with the realities of a softening job market and inflationary pressures

.