Who will replace Powell? Federal Reserve Governor Warsh becomes the top candidate.

According to sources familiar with the matter, President Donald Trump's advisory team is currently looking for a successor to Federal Reserve Chairman Jerome Powell, and Federal Reserve Board Governor Christopher Waller is currently the most popular hot candidate. Sources indicate that Waller is willing to formulate policies based on forecasts rather than existing data and has a deep understanding of the Federal Reserve system, which has impressed Trump's advisors. The sources state that Waller has met with the president's team to discuss the position, but has not met with Trump himself. Sources reveal that former Federal Reserve official Kevin Warsh and current White House National Economic Council Director Kevin Hassett are also vying for the position. Powell's term as Federal Reserve Chairman will end in May 2026. White House spokesman Kush Desai stated in a statement, "President Trump will continue to nominate the most capable and experienced candidates. However, unless it is a statement made by President Trump himself, any discussion regarding personnel decisions should be considered pure speculation." A representative of the Federal Reserve declined to comment. White House Economic Council Chairman Stephen Moore stated on Thursday, "I believe Governor Waller's performance at the Federal Reserve over the past two years has been outstanding. He has made accurate judgments on inflation forecasts and how the Fed should adjust policies to address inflation." It was reported that Trump announced on Thursday the nomination of Moore as a Federal Reserve Governor to fill the vacancy left by the sudden resignation of Federal Reserve Governor Adrienne Kugler. Trump stated that Moore's term would continue until January 31, 2026, and that he would continue to search for a long-term replacement for the position. Trump stated on Wednesday that the government had narrowed down the list of candidates for Federal Reserve Chairman to three people. Trump stated that U.S. Treasury Secretary Scott Bennett, Vice President JD Vance, and Commerce Secretary Howard Lutnick were all being considered by the selection committee. Hassett has reportedly met with Trump to discuss the position of Federal Reserve Chairman and has impressed Trump and his team. Warsh ran for Federal Reserve Chairman in 2017 but was ultimately defeated by Powell. Last November, Warsh was also considered for the position of U.S. Treasury Secretary. Waller casts dissenting vote Despite strong pressure from Trump, the Federal Reserve decided last week to keep the benchmark interest rate unchanged, but there was clear dissent within the board, with Waller and Federal Reserve Governor Michelle Bowman casting dissenting votes. Waller and Bowman, both appointed by Trump, favored a 25 basis point rate cut, citing increasing signs of weakness in the labor market. Just days after the Federal Reserve announced it would keep rates unchanged, a jobs report showed a sharp slowdown in job growth over the past three months, providing the basis for Waller and Bowman's opposition. Waller's views differ from those of Powell and other members of the Federal Reserve Board. Those members have so far believed that the labor market is generally healthy and have maintained patience in adjusting rates so that the Federal Reserve can continue to assess the impact of Trump's tariff policies on the economy. This view has frustrated Trump, who has repeatedly criticized Powell for not cutting rates sooner. Rich experience with the Federal Reserve Trump nominated Waller to the Federal Reserve in 2020. Previously, Waller served as research director and executive vice chairman of the St. Louis Federal Reserve. In 2020, senators supported Waller's nomination to the Federal Reserve Board with a vote of 48 in favor and 47 against. During his tenure as a Federal Reserve Governor in 2022, Waller engaged in public debates with influential economists outside the Federal Reserve, including former U.S. Treasury Secretary Larry Summers. Waller believed that the Federal Reserve could successfully reduce post-pandemic inflation without significantly increasing the unemployment rate. In the end, his views were confirmed: inflation fell below 3%, and the unemployment rate never rose above 4.2%. Trump's dissatisfaction with Powell has raised questions about whether his choice for the next Federal Reserve Chairman will support the Fed's independence in monetary policy. In April of this year, Waller stated that the Fed's independence is "critical to the well-functioning of the U.S. economy." He stated that markets, Fed watchers, and consumers have all criticized Powell. Waller said, "If you don't like being criticized, don't take this job. The president is free to express his views on policy, just like anyone else." Last month, Waller stated in an interview that he had not received any direct messages from Trump regarding the position of Federal Reserve Chairman. He stated in July, "If the president finds me and says 'I want you to serve,' then I will definitely accept. But he hasn't contacted me yet."