Trump has narrowed his Fed chair shortlist to three or four names but hasn’t revealed them

Donald Trump, from inside the White House, said Wednesday that he’s already trimmed his Fed chair shortlist down to “three or four” people. At the same time, the US Treasury confirmed 11 candidates will still go through formal interviews.

According to the Financial Times, those interviews will be led by Scott Bessent, who currently serves as Treasury Secretary. Trump also said he might announce a preferred successor before Jay Powell’s term ends in May 2026.

Trump didn’t name names during his statement, but three contenders keep coming up: Kevin Hassett, who runs the National Economic Council; Kevin Warsh, a former Fed governor; and Christopher Waller, who is currently sitting on the Fed board. Trump described them only as “great” candidates. Meanwhile, Scott is preparing to interview eight more names that few see as serious contenders.

Trump rages at Powell and demands immediate rate cuts

Trump also went off on Powell again, calling him a “moron” and a “numbskull” during his Wednesday comments. He repeated that Powell’s refusal to cut interest rates has hurt the economy.

Trump said he plans to make a decision on Powell’s replacement “a little bit early” and wants interest rates slashed all the way down to 1%. The current rate stands between 4.25% and 4.5%.

The president blames Powell for stalling cuts that began in 2024, saying the trade war made things worse. Powell had argued back then that more cuts could lead to rising prices, especially with tariffs still hitting imports.

But July’s lower inflation reading and weak job numbers have brought new pressure. Trump’s administration, including Scott, now wants a 0.5 percentage point cut at the next Fed meeting in September.

Other names on the interview list include David Zervos, chief market strategist at Jefferies; Larry Lindsey, former Fed governor and ex-NEC chair; and Rick Rieder, BlackRock’s bond chief. Scott confirmed all three will be interviewed, but most believe they’re just there to fill the schedule.

Also on the list but not likely to get picked: Michelle Bowman, Philip Jefferson, Lorie Logan, James Bullard, and Marc Sumerlin. Michelle and Christopher wanted a 0.25% cut during last month’s vote, but their proposal didn’t pass.

Michelle’s experience is in banking supervision, not rate-setting. Philip has more of an economics background, but was nominated by Joe Biden, which hurts his chances under Trump.

Fed officials clash over tariffs, labor, and next rate move

Christopher and Michelle are now part of the president’s short-term focus, especially after the Fed held rates steady in July. Michelle supported a cut based on early labor signals. Christopher backed her, saying the weakness needed attention. But the rest of the committee voted to hold.

Then came the Labor Department’s revisions. Job growth in May and June was slashed, and July’s report came in worse than expected. Trump immediately accused the department of manipulating data and fired the commissioner responsible. Despite that, Scott and other officials used the data to argue the Fed now has a green light to cut faster.

James Bullard, former St. Louis Fed chief, told CNBC the Fed needs to act now. He pushed for a full 1% cut by mid-next year. Marc Sumerlin, a Bush-era adviser who had also been considered in 2017 before Powell got the job, is on the list again but has not made any public comments.

Austan Goolsbee, who runs the Chicago Fed, told a room in Springfield, Illinois, that the Fed is still trying to figure out what kind of impact tariffs are having. “These are going to be some live meetings as we go into the fall,” he told the Greater Springfield Chamber of Commerce. He added that “the hardest thing a central bank ever has to do is to get the timing right when there are moments of transition.”

Austan said he doesn’t trust the idea that tariffs will only raise prices temporarily. He’s waiting on new wholesale price data this week and broader inflation numbers next month before deciding whether to support a cut.

He also pushed back on panic over the weak July job print. Austan said the slowdown might have more to do with a sharp drop in immigration than actual labor market cracks. “I think the state of the labor market is pretty strong, pretty solid,” he said.

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