Trump Plans Federal Reserve Chair Announcement Amid Fed Vacancy

President Trump is poised to nominate a replacement for Federal Reserve Governor Adriana Kugler, who abruptly resigned, with the decision expected soon. Trump has narrowed his shortlist for the next Federal Reserve chair to four loyalists: Kevin Warsh, Kevin Hassett, Christopher Waller, and Michelle Bowman, all of whom support lowering interest rates and are aligned with his economic viewpoints. Treasury Secretary Scott Bessent, once a strong contender, has declined consideration to remain at the Treasury Department. The nomination holds significance as it could influence the leadership transition at the Fed, with Jerome Powell’s chairmanship ending in May 2026, although his board term lasts until 2028 and he may choose to stay. Trump has been critical of Powell’s approach, advocating for more aggressive rate cuts, and has even suggested shifting control of the Fed away from Powell, raising concerns about the central bank’s political independence. The choice of chair could impact U.S. monetary policy direction, market perceptions, and the dollar’s strength, with Warsh seen as the most hawkish candidate and Hassett and others more dovish and potentially more receptive to Trump’s influence.