The race to lead the U.S. Federal Reserve is heating up as President Donald Trump confirmed two top contenders to replace Jerome Powell when his term ends in May 2026: Kevin Hassett and Kevin Warsh.
Speaking at a press conference on August 6, Trump revealed that the interview process has begun and the shortlist has narrowed to three candidates. “Certainly, Kevin Hassett and Kevin Warsh are leading. Both are excellent,” he said.
This announcement comes amid Trump’s ongoing criticism of the Fed’s current interest rate policy. The President has repeatedly lambasted Powell for keeping rates high, claiming they should be slashed from the current 4.25–4.5% to as low as 1%.
By seeking a new Fed Chair, Trump aims to recalibrate U.S. monetary policy ahead of the upcoming election, reinforcing his “America First” economic agenda.
Kevin Hassett, former Chairman of the Council of Economic Advisers under Trump, is seen as ideologically aligned with the President on fiscal and monetary issues. With strong political credentials, Hassett previously advised Republican campaigns, including those of George W. Bush, Mitt Romney, and John McCain.
Meanwhile, Kevin Warsh, a former Fed Governor and Morgan Stanley executive, enjoys solid backing from Wall Street. However, Warsh’s historically hawkish stance on inflation raises questions about whether he would fully support Trump’s call for aggressive rate cuts.
The sudden resignation of Fed Governor Adriana Kugler has created an immediate vacancy. Trump hinted at appointing a temporary replacement to complete her term, before making an official nomination for the Chair role in 2026.
One potential interim choice could be David Malpass, former World Bank President, though it’s unlikely either Hassett or Warsh would accept a temporary assignment.
Fed Governor Christopher Waller, appointed by Trump during his first term, also remains a strong wildcard contender, favored by some investors for his policy experience.
The next Fed Chair will wield enormous influence over U.S. economic direction in the post-inflation recovery era. Decisions on interest rates, balance sheet management, and credit conditions will shape investment, consumer confidence, and growth prospects for years to come.
As global markets closely monitor Washington, the final choice between Hassett's loyalty and Warsh’s expertise may define the tone and trajectory of Fed leadership in a pivotal economic period.
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