Written by Ashton Snyder on
 July 6, 2025

Report: Trump administration eyeing new Fed chair candidates

The Trump administration has set its sights on finding a replacement for Federal Reserve Chairman Jerome Powell this fall, a move designed to potentially align more closely with its economic objectives.

Trump Treasury Secretary Scott Bessent has stated that the aim is to appoint a successor to Powell after Labor Day while simultaneously ensuring the Federal Reserve’s policies are in harmony with the administration's economic strategies, as the New York Post reports.

President Donald Trump first appointed Jerome Powell during his initial term, but has since expressed dissatisfaction with Powell's monetary policies. Criticism from the President has been a constant as he urges Powell to resign, especially in light of the Federal Reserve's reluctance to cut interest rates.

Current rates, standing between 4.25% and 4.5%, have been a point of contention given the administration's view that they are unusually high. Bessent, articulated in an interview with CNBC, conveyed the administration's determination by noting the Fed's inertia around reducing rates amid stable unemployment and inflation above the 2% goal.

Exploring new leadership

Bessent, emphasizing the prospective change, described a pool of "a lot of good candidates" poised to replace Powell. Despite Trump's frequent critiques, Powell cannot be dismissed solely on policy differences, but the administration appears set on change. Bessent's remarks also reflected on the anticipated end to Powell’s tenure, providing insight into the realm of potential candidates and their alignment with Trump's vision.

The issue of tariffs also plays a significant role in this evolving economic landscape. The Federal Reserve has voiced concerns over the potential inflationary pressure tariffs can impose. Trump’s unexpected tariff hikes in April led to a substantial 15% market fall but the market quickly bounced back. The administration has downplayed the inflationary effect of tariffs, arguing that the increases are temporary, not long-lasting.

Market reactions, economic implications

While the Federal Reserve retains a wary stance regarding price increases driven by tariffs, Bessent assured that “tariffs haven't hurt” the economy in the way some critics anticipated. As a testament to this belief, he underscores that numerous deals -- peace, trade, and tax -- executed by the Trump administration have successfully bolstered economic standing.

The stability brought by Trump's tax bill has also been a point of pride for the administration, which posits that the legislation encourages private-sector capital deployment. The interconnection between such fiscal policies and the search for a fitting Fed leader illustrates the broader economic strategy unfolding as midterm elections loom.

Current, future roles in limbo

While Bessent's own name surfaces as a potential candidate to chair the Fed, he has signaled satisfaction with his current role, highlighting the rarity of someone holding both the Treasury Secretary and Fed Chair roles concurrently since the 1930s. Yet, the Federal Reserve Act restricts Board members from taking on additional public service responsibilities during their tenure.

In a recent, unforeseen maneuver, Trump appointed Marco Rubio as the national security adviser while he continues as secretary of State, demonstrating the administration’s flexibility with dual roles. Given this precedent, it may open the door for similar unconventional appointments, though the intricacies of Federal Reserve regulations might impose stricter guidelines.

Changing landscape in economic governance

The goal to nominate a successor to Powell after Labor Day underscores the administration's intent to synchronize the Fed’s leadership with its policy agenda. Bessent, along with other officials, has suggested any missteps by the Fed in controlling "real rates" could potentially exacerbate economic challenges, thus, advocating for a reconsideration of the current interest rate setting.

With economic policy at the forefront of national discourse, the fall season heralds potentially significant changes in U.S. economic stewardship. The assertion by Bessent that the president’s achievements in various sectors will enhance even further after Labor Day indicates a renewed focus on recalibrating federal economic policy toward sustained growth.

Through strategic appointments and policy negotiations, the administration aims to secure its vision of economic prosperity, leveraging monetary management as a key component of this pursuit. As this saga unfolds, the nation's economic direction remains subject to the outcomes of these pivotal leadership decisions and their implementation.

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About Ashton Snyder

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