Trump Administration Expands Search For Fed Chair Candidates

President Donald Trump is actively involved in selecting the next Federal Reserve chair to replace Jerome Powell, whose term ends in May 2026. Trump has expressed a strong desire for a chair aligned with his calls for lower interest rates and aggressive monetary policy, though the Fed's independence remains a critical concern for both officials and markets. Treasury Secretary Scott Bessent is leading a thorough search process, considering internal Fed candidates such as vice chairs Michelle Bowman and Philip Jefferson, Dallas Fed President Lorie Logan, as well as external candidates like James Bullard and economist Marc Sumerlin. The decision is complicated by the need to balance inflation control, market confidence, and the independence of the Fed, with candidates showing varying stances on interest rate policies. Trump cannot directly remove Powell but aims to appoint a loyalist through Senate confirmation, potentially elevating Trump’s chief economist Stephen Miran. A final decision is expected this fall, with significant implications for U.S. monetary policy and economic strategy.