Aboard Air Force One on Monday, Secretary of State Marco Rubio and U.S. Treasury Secretary Scott Bessent hovered over President Donald Trump’s shoulder as he told reporters he might name a successor for Jerome Powell — whose term as chairman of the Federal Reserve’s Board of Governors expires in May 2026 — earlier than previously expected.
“I’d say maybe by the end of the year,” said Trump, glancing at Bessent.
“Before Christmas, right around then,” agreed Bessent, who was once under consideration for Fed chair but formally declined the job in August.
“We want to get ‘Too Late’ out as soon as possible,” Trump added, referring to Powell by the nickname Trump has used to express his frustration at the central bank leader’s perceived delays in lowering interest rates. Trump named Powell to the chairmanship in 2018, and he was nominated for a second term by President Joe Biden in 2021.
Now leading the vetting process, Bessent confirmed Monday that the five-member shortlist for Fed chair has not changed from previous reports of potential candidates.
The list of finalists includes Kevin Warsh, a former Fed governor during the George W. Bush administraton; current Fed governors Michelle Bowman and Christopher Waller; White House National Economic Council Director Kevin Hassett; and BlackRock fixed-income executive Rick Rieder.
In an interview with CNBC earlier this month, Waller described the vetting process as being apolitical and focused on serious economic discussions. Waller has served on the Fed’s board since early 2020.
Bowman, who also serves as the vice chair for bank supervision at the Fed, has expressed more dovish views about interest-rate easing compared with her central bank colleagues, which likely resonates favorably with Trump.
Bowman was one of two Fed governors to voice a rare dissent at the Fed’s July monetary policy meeting, calling for a quarter-point cut against a consensus to leaves rates unchanged.
Over the course of 2025, Trump’s campaign to influence Fed monetary policy has shifted from threatening to fire Powell in April to naming his replacement on an accelerated timeline, a move that could undermine Powell’s authority in the eyes of the market.
Powell’s term as a Federal Reserve governor runs through January 2028, and it is unclear whether he will remain on the Fed’s board when his chairmanship term expires in May. In press conferences this year, Powell has repeatedly resisted calls to weigh in on his future with the central bank.
Last month, the Fed lowered the overnight lending rate for banks by 25 basis points, though minutes from the meeting revealed a range of views on future cuts.
Four weeks into a U.S. government shutdown that commenced Oct. 1, the Fed’s rate-setting body, the Federal Open Market Committee, gathers for its two-day October policy meeting Tuesday, with markets largely anticipating an additional 25-basis-point cut.
