Trump Weighs Three Finalists to Replace Powell as Fed Chair Amid Criticism Over Interest Rate Policy

Washington, Sept 7 2025 — President Donald Trump is weighing three finalists to replace Jerome Powell as chairman of the Federal Reserve, setting the stage for what could be one of the most consequential appointments of his presidency.

Powell, whose term has been defined by battles over inflation and interest rates, has faced relentless criticism from Trump for refusing to cut rates as aggressively as the president demanded. The administration’s frustration has now culminated in an active search for a successor.

Treasury Secretary Scott Bessant, who is leading the vetting process, accused the Fed of “policymaking arrogance” and called for a sweeping review of the central bank’s operations. This review would include not only its core function of setting interest rates but also oversight of its little-known police force.

The Candidates in Focus

Trump’s shortlist features Christopher Waller, a current Fed governor; Kevin Hassett, the White House’s top economic adviser; and Kevin Warsh, a former Fed governor with deep Wall Street ties. Each candidate brings a unique policy outlook, track record, and political baggage, and online betting markets suggest no clear favorite has yet emerged.

Christopher Waller, 66 – Fed Governor

A career economist, Waller joined the Fed’s Board of Governors in 2020 after serving as chief research economist at the St. Louis Fed. From the outset, he emphasized the importance of the Fed’s independence, but he has also been unafraid to challenge consensus when he believed policy needed to shift.

Waller was among the first at the Fed to argue for raising interest rates in 2021 as inflation accelerated. His forecast that higher rates would not necessarily spike unemployment proved prescient. More recently, he has been ahead of his colleagues in calling for policy easing and even dissented from the Fed’s July decision not to cut rates.

Key quote (Aug. 28, 2025, Economic Club of Miami):
“Based on what I know today, I would support a 25 basis point rate cut… Although there are signs of weakening in the labor market, I am concerned conditions could deteriorate quickly. It’s important that the Fed not wait until deterioration begins and risk falling behind.”

Betting odds: 28% (Polymarket), 27% (Kalshi)

Kevin Hassett, 63 – Director of the National Economic Council

Hassett is a familiar figure in Republican economic circles, having advised conservative policymakers for decades. He first rose to prominence in Trump’s orbit during the president’s first term, serving as chair of the White House Council of Economic Advisers from 2017 to 2019. He currently leads the National Economic Council and is one of Trump’s closest economic confidants.

Hassett has strongly backed Trump’s tariffs and trade policies, often clashing with Fed officials over their warnings that tariffs could fuel inflation. He has echoed Trump’s frustrations with Powell, most recently supporting the president’s controversial decision to dismiss the commissioner of the Bureau of Labor Statistics after the agency revised job growth numbers downward.

Key quote (Aug. 3, 2025):
“The president’s frustration is that he believes other countries have cut interest rates while the U.S. has not. He worries, just like the BLS, that there may be biased calculations at play. It’s disappointing that the Fed’s explanation for unusually high rates is uncertainty from tariffs, when it hasn’t shown us clear evidence of that impact.”

Betting odds: 18% (Polymarket), 30% (Kalshi)

Kevin Warsh, 55 – Former Fed Governor, Hoover Institution Fellow

Warsh, once one of the youngest Fed governors in history, was appointed in 2006 by President George W. Bush. He played a key role as Ben Bernanke’s liaison to Wall Street during the 2007–2009 financial crisis. However, he broke with the Fed’s leadership over its large-scale bond-buying program, which he argued blurred the line between monetary and fiscal policy. Warsh resigned in 2011, years before his term ended.

Trump nearly selected Warsh as Fed chair in 2018, later admitting he regretted not doing so. Since then, Warsh has become an outspoken critic of the Fed, appearing frequently in media to argue that the central bank is overly cautious and excessively entangled in politics.

Key quote (July 17, 2025 )
“We can start reforming the Fed by cutting interest rates — that’s the first step toward regime change. Take the Fed out of fiscal and political matters, and get liquidity to the people who need it most in the real economy. Cutting rates is the beginning of getting the balance right. We need a strong real economy to make this a golden age.”

Betting odds: 13% (Polymarket), 19% (Kalshi)

A Defining Choice

The decision over Powell’s successor will reverberate far beyond Washington. The next Fed chair will inherit responsibility for stabilizing prices, managing labor market risks, and navigating global economic uncertainty at a time when Trump is pushing for more aggressive rate cuts to stimulate growth.

Analysts caution that any change at the top could reshape both the Fed’s policymaking style and its independence from political pressure. Whether Trump opts for an insider like Waller, a loyalist like Hassett, or an outsider critic like Warsh, the choice will mark a critical turning point for U.S. monetary policy.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)