Donald Trump said he would “shortly” announce his pick for an open seat on the Federal Reserve’s board of governors and possibly his nominee for Fed chair as well, but that he had removed treasury secretary Scott Bessent from consideration since Bessent wants to remain in his current job.
In a CNBC interview, Trump called it a “pleasant surprise” that Fed governor Adriana Kugler had decided to leave her seat now instead of when her term ends in January, a move that appears to have accelerated Trump’s decision on who to appoint to an open seat on the Fed board with possible plans to promote that person to the top policymaking role when Fed chair Jerome Powell’s term ends in May.
“It’ll be one of four people,” Trump said, adding that he considered both current economic adviser Kevin Hassett and former Fed governor Kevin Warsh as “very good” possibilities. He did not name the other two, but is reportedly considering current governor Christopher Waller, who has advocated rate cuts but not at the pace or extent Trump wants.
“There are numerous people that are qualified,” Trump said. “I am going to be announcing that very shortly,” the president said of naming a replacement for Kugler. “A lot of people say, when you do that, why don’t you just pick the person who is going to head up the Fed? That’s a possibility too,” Trump said.
Trump has been critical of Fed chair Powell for not cutting interest rates, even as Fed policymakers balance evidence of both a slowing economy and a weakening job market against the fact that inflation remains well above the central bank’s 2% target and is expected to move higher.
Whoever Trump names to Kugler’s seat will need to be confirmed by the Senate, and it would be for a shortened term of only a few months, and require another Senate vote for a full 14-year term early next year. The nomination for chair of the Fed board would require a separate nomination and Senate confirmation process.